BUS FPX 4013 Assessment 4 Organizational Designs
Phillip March 6, 2024 No Comments

BUS FPX 4013 Assessment 4 Organizational Designs

BUS FPX 4013 Assessment 4 Organizational Designs

Name

Capella university

BUS-FPX4013 Organizational Structure, Learning, and Performance

Prof. Name

Date

Introduction

Organizational design significantly impacts an organization’s success. This paper examines four organizational design structures, comparing their characteristics and evaluating their potential contribution to establishing high-performance organizations.

Organization Designs

The functional organization is characterized by specialized departments based on expertise, such as marketing or human resources. Governmental entities, with autonomous agencies and departments, exemplify this structure.

The matrix organizational structure involves multiple reporting structures, combining functional and divisional responsibilities. Phillips, implementing this structure in 1970, required managers to report to both product division and geographical managers.

BUS FPX 4013 Assessment 4 Organizational Designs

The network structure integrates multiple organizations to deliver products or services. For example, a general contractor may outsource specialized tasks like flooring and painting while employing construction workers.

The virtual organization is geographically dispersed, with employees working remotely and communicating digitally. Symplr, a healthcare operations company, demonstrates this structure by providing remote healthcare solutions.

Organization Design Comparison and Their Challenges

Functional and matrix organizations share hierarchical leadership, but the matrix structure is more complex with multiple reporting relationships. Network organizations minimize hierarchy, relying on external partners. Virtual organizations may maintain hierarchy, but remote communication poses challenges.

Hybrid approaches incorporating various design types are common among large corporations. Smaller organizations may benefit from functional or virtual designs due to easier oversight and reduced overhead costs.

Organizational Design Choice and High Performance

A well-implemented virtual organizational design can lead to high performance, especially in dynamic environments like the COVID-19 pandemic. Transitioning to a virtual structure optimizes costs, minimizes health risks, and widens the talent pool.

Although restructuring costs may be high initially, potential savings from reduced overhead expenses can enhance organizational performance by promoting efficiency.

References

MindTools Content Team. (2019). Organization Design. Retrieved from MindTools.com: https://www.mindtools.com/pages/article/newPPM_95.htm

SOBIYA. (n.d.). Network Organizational Structure: Examples, Definition, Advantages & Disadvantages. Retrieved from advergize.com: https://www.advergize.com/business/network-organizational-structure-examples-definition-advantages-disadvantages/

Symplr. (n.d.). About Us. Retrieved from Symplr.com: https://www.symplr.com/about

UpCounsel. (n.d.). Functional Organizational Structure. Retrieved from UpCounsel.com: https://www.upcounsel.com/functional-organizational-structure

BUS FPX 4013 Assessment 4 Organizational Designs

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