Traditional organisational designs
Traditional organizational designs typically include hierarchical structures, where decision-making authority and flow of information follows a clear top-down approach. These designs are characterized by the following aspects:
1. Functional Structure: This design groups employees based on their specialist functions, such as finance, marketing, operations, and human resources. Each function is led by a department head or manager who oversees the work of their respective teams.
2. Divisional Structure: In this design, the organization is divided into separate divisions based on geographical locations, products, or customer segments. Each division operates as a separate entity with its own functional departments, such as marketing and finance, to support the specific needs of that division.
3. Matrix Structure: This design combines aspects of both functional and divisional structures. Employees work across different projects or teams while simultaneously reporting to their functional managers. It allows for cross-functional collaboration and sharing of resources.
4. Line and Staff Structure: This structure differentiates between line functions, responsible for core operations and revenue generation, and staff functions, which provide support and advisory services to line functions. Staff functions, such as human resources, legal, and IT, assist line managers in decision-making.
5. Centralized Decision-Making: Traditional designs often have a centralized decision-making process, where significant decisions are made by top-level executives or a central authority. This approach ensures consistency and coherence in decision-making but may hinder agility and responsiveness.
6. Clear Chain of Command: Traditional designs have a clear hierarchy of authority, with each employee reporting to a supervisor or manager. This chain of command defines the flow of authority, responsibility, and accountability within the organization.
7. Specialized Roles and Job Descriptions: Traditional designs generally have well-defined roles and job descriptions that outline individual responsibilities and tasks. This clarity helps in organizing work, setting expectations, and evaluating performance.
Traditional organizational designs have been widely employed for their stability, clarity, and control. However, they are often criticized for being bureaucratic, inflexible, and slow to adapt to changing market conditions.