Chapter 11, Problem 1RDQ

Summary Introduction

To determine:

The four types of contemporary organizational designs along with the similarities and differences between them.

Introduction:

The contemporary organizational design of organizational structure removes the stringent top-down model of the traditional structure of an organization with the project-based approach of delegating the work to the teams who hold expertise in their given areas and discipline. Hence, this type of organizational structure eliminates the vertical structure which is adopted by traditional organizations.

Answer to Problem 1RDQ

The contemporary organizational design are of four types:

1. Team structure
2. Matrix structure
3. Project structure
4. Autonomous units

Explanation of Solution

The four types of contemporary organizational design include team, matrix, autonomous units and project structure.

Team structure

It refers to the type of structure in which the organization is made into teams and every team has the responsibility to undergo. This makes it possible for the business to perform well and achieve its goals. One of the remarkable facts about this type of organization is that there is no hierarchy of chains or command in this type of structure and the teams enjoy the flexibility to function in their own manner in order to achieve the tasks and goals.

Matrix structure

This type of structure refers to the delegation of work and tasks to one or more than one project to the specialist from varied functional departments. Different project managers take responsibility for the projects in their command. The functional managers, on the other hand, are responsible to look after the functioning of their respective projects happening at the same time in the organization.

Project structure

This structure is similar to matrix structure and it is based upon employees working on a specified project. However, unlike the matrix structure, there is an absence of the functional organization in this structure of the organization. This type of organization thus employs the necessary employees who could successfully accomplish the given project.

Autonomous Units

The autonomous internal units comprise varied independent decentralized units of business that have under their own product clients, profits, etc. Hence, there is an absence of centralized control in this case.