Prime Minister National Youth Development Programme: Kamyab Jawan
Prime Minister National Youth Development Programme: Kamyab Jawan
Prime Minister National Youth Development Programme: Kamyab Jawan
Programme
Assignment # 03
Organizational Structures
Submitted by
Fiza Mushtaq
Section A
Submitted To
Mr Salman Ghani
Submitted On
8/03/2020
1) Multidimensional Organizational Structure
The responsibility for turnover, profit, market share is being distributed across
different dimensions in the organization (making various cross sections of the
organization). This can be a category/unit, geographical area, business model or any
other axis relevant for the organization.
The management information on the turnover, cost, profit and market share is being
reported and controlled simultaneously on the different dimensions.
There is only one source of truth, set of management information, which is
maintained at concern level and from which on all dimensions can be reported.
There is no hard coupling anymore between the responsibility for the results and
management of all the required resources (e.g. by working with shared services).
Advantages:
Workers in a multidimensional structure typically have a greater deal of control over the tasks
to be completed in the individual division office. This allows the business to be more flexible.
When changes occur, they're typically noticed at the level of divisional workers, who can
then adapt to the changes by taking immediate action. The multidimensional structure also
allows workers to focus on a specific area of business, making the divisions highly
specialized in their area of expertise.
Disadvantages:
In a hybrid structure, if the baby food manufacturer was establishing a new product line, it
could take functional expertise from various groups such as marketing, research and
development and sales to create a product launch team. Those employees would report to
their functional managers as well as the project manager for the product launch team.
Advantages:
Setting up a vertical-horizontal organizational hybrid can give companies the advantages of
both component structures. Lateral teams give what would otherwise be a rigid vertical
structure flexibility. Teams can be formed, adjusted and dissolved according to need. There’s
no bureaucracy standing in the way of a team’s ability to innovate. The functional
segregation that usually gets in the way of interdepartmental cooperation, coordination and
communication is gone, leaving the teams able to make rapid progress toward goals. The
functional hierarchy still exerts control, meanwhile, making sure there’s no duplication of
effort and resources.
Disadvantages:
The major pitfall of the hybrid structure lies in its two command chains. Every employee
must answer to two supervisors, opening every employee up to divided loyalties and conflicts
of interest. Bosses might also have conflicts if functional goals are at odds with project goals.
For instance, a functional department needing to keep down costs might balk at providing
more departmental resources to a particular project. Communication and conflict resolution
skills are necessary abilities for this structure to succeed. Power between the vertical and
horizontal frameworks must be kept in balance.
The term virtual organization is used to describe a network of independent firms that join
together, often temporarily, to produce a service or product. Virtual organization is often
associated with such terms as virtual office, virtual teams, and virtual leadership. The
ultimate goal of the virtual organization is to provide innovative, high-quality products or
services instantaneously in response to customer demands.
The term virtual in this sense has its roots in the computer industry. When a computer
appears to have more storage capacity than it really possesses it is referred to as virtual
memory. Likewise, when an organization assembles resources from a variety of firms, a
virtual organization seems to have more capabilities than it actually possesses.
Advantages:
Lower Overhead Costs. Virtual organizations enjoy significant decreases in
operating costs. Aetna was able to shed 2.7 million square feet of office space and save $78
million due to a shift toward virtual teams and remote work
Improved Employee Satisfaction. Employees are simply happier when they are able
to work from home. 82% of remote workers have reported that they have lower stress levels.
The study also showed that a shift toward remote work led to fewer absences and a higher
morale.
Improved Employee Efficiency. Remote employees get more work done without the
transactions of the office. 30% of workers in a recent survey stated that working remotely
allowed them to accomplish more in less time.
Improved Scalability and Growth Potential. Without the overhead typically
associated with maintaining an office space and fewer investments in supplies, companies
can free up capital to improve their scalability and growth potential. Remote teams are simply
more agile.
Larger Talent Pool. Startups who hire workers remotely are able to access a larger
pool of talent. You can hire talent from anywhere in the world without limiting yourself to
one specific geographic location.
Improved Employee Retention. Employees that are happier in their work are more
likely to stick around. With competitive salaries, remote workers are less likely to leave their
jobs.
Access to New Markets. Hiring remotely allows your startup to tap into new
markets. This is particularly useful when it comes to remote sales teams, who will be able to
reach out to new customers that otherwise would have been out of reach for your
organization.
Disadvantages:
Lack of Camaraderie. Remote workers rarely speak face-to-face.
Even companies that make full use of video chat solutions often find that it isn’t enough to
fully simulate the camaraderie that you build when you work together in an office
environment. There is less opportunity for impromptu conversations. You learn less about the
people that you work with. Companies with remote teams need to take steps to bring their
teams together and facilitate that togetherness.
A Need for Increased Focus on Communication. Because your
teams will not be able to pass information between themselves like they would in an office
environment, you need to give them the tools and policies that ensure that they actively
communicate
Reputational Risks. A poorly run virtual team can lead to knocks to
your reputation. Some potential customers may be wary of working with a company that has
a virtual office with remote employees and may not take your startup as seriously.
Security and Compliance Issues. Working remotely means passing a
lot of data back and forth. In some industries (health, financial, etc.) it may be too risky for
startups to opt for a virtual organizational design.
4) PMO Organizational Structure
Advantages:
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