Two types of organisational design
1. Functional Organizational Design: In this type of design, an organization is divided into various functional departments, such as marketing, sales, operations, finance, and human resources. Each department has its own set of tasks, responsibilities, and expertise, and employees in these departments report to their respective departmental heads. This design allows for specialization and efficiency within each department but can sometimes lead to silos and a lack of collaboration between departments.
2. Matrix Organizational Design: This design combines functional and project-based structures. Employees have dual reporting lines – one to their functional department and another to a project manager or team leader. This allows for cross-functional collaboration and flexibility in resource allocation. Matrix structures are often used in complex projects or organizations that require a high level of coordination between different functions. However, it can sometimes lead to confusion or conflicts related to authority and decision-making.