Strengths: Advantages And Disadvantages Of Organizational Structure

Every company tends to apply the organization structure that is most suitable, and there is no perfectly correct or wrong way to build a business. Whether a particular organization structure is beneficial or detrimental to the company depends on the company 's strategy, the type of business, management style and its target market. In choosing the organizational structure of the company, the management is looking to bring the company 's moving components together into a coordinated, effective and efficient unit. The choice is extremely significant because the right people and work portfolio facilitate business activities and allow employees to complete the company 's strategic, mission and vision. Based on the answers above, the existing

Unfortunately, there are few disadvantages of the functional organization structure. One of the major drawbacks is that it will cause poor communication and coordination between different functions. Since functional units are not responsible for each other, they may have difficulty in cooperation and inter-departmental conflict situation. They only concerned about their jobs, and ignore the outside world. In addition, because of the standardized mode of operation, the organization may be rigid, not adaptable and flexible enough to fit the dynamic

Nevertheless, there are some disadvantages of matrix organization structure. The matrix organization structure is more complex than functional organization structure, considered as the toughest form to work in which creating a conflict on chain of command, responsibility and authority between the employees. This may lead to staff frustration and confusion, because the report line is not clear. It may also be difficult for employees to set priorities when they are moving between competing projects. The matrix structure implementation is usually forced to the organization, not the response to the real demand. They are imposed on employees who are accustomed to working in a traditional hierarchical environment and do not provide appropriate training. The main conceptual benefits of the new matrix organization, such as flexibility and efficiency, are the actual flaws in the conflict because the organization is immersed in the new equipment shortage. The failure of the matrix structure in the 1970s caused a sharp decline in popularity. "By the mid-1980s, it was hard to find anyone to maintain matrix management". Many organizations decided to abandon this concept. (KrzysztofGoś, M.A, 2015) Additionally, matrix organization structure involves highly cost as there will be much information and paper work collection. Most of the employees are experts in the specific area and they are given high facilities, salaries and incentives. There will be a difficult task to balance