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neb2 replied to the topic Organization Type vs. Effectiveness in the forum Organizational Development in Device Companies 9 years, 1 month ago
Hi hg93, I agree that a composite organization will be best suited since it allows a company to blend the functional, matrix and project-based type of organizations to help suit the company’s needs. Also,it is important to know that a composite organization does not really mandate the use of all three, any blend of the three types can be used and it does not use any set of standard procedures from the other three type of organizations so new operating procedures can be created. For example a company that uses a functional type of organization can use a project-based type of organization to handle a critical project or the type of organization that best suits the needs of the project.
Some advantagesare:
– You can use different combinations of structures for different organization.
– It creates flexibility for each organization and for each project.
– It can be organize in a way that best fits the organization’s or the project’s needs.
-It is effective due to its flexibility and allows for company to use the organizational approach that make the most sense for the circumstances in the project.
Some disadvantages are:
– Having a very good understanding of the type of structural organizations, how they best fit together for your company.
– Putting together or implementing a composite organization could take a long time and it can fail.
– Changes are also hard for people to adapt to, so it could be slightly hard to implement a composite organization.