However, once those are in place, you must shift your focus to the team members and managers of that process and provide them the power to scale. Has a wider dimension and wider reach: Disadvantages of Office Circular Letters: 4. Imagine you get a circular about a program or a crash course dealing with marketing strategy. For traditional organization structures, departmentalization means that “how to group work positions into formal teams or departments that are linked together in a coordinated way” (Victoria management school, 2010, p. 272). Organizational functions within an organization are Sales and Marketing, production, human resources, finance, Research & development, and Purchasing etc. Suppose, if the manager has to question its employees their views about an organizational aspect, they can very well utilize this method and ask their suggestions to be submitted in the ballot box. Mechanistic structures, also called bureaucratic structures, are known for having narrow spans of control, as well as high centralization, specialization, and formalization. These fliers can also use if the company undergoes the process of recruiting new people and wants the old employees to understand and also to invite some of their friends and relatives to apply. If a company performs extremely well, then the management can’t wish every one personally about the achievement and their contribution. Matrix Organization: Disadvantages Like any organizational form, the matrix has its disadvantages. Loves Writing in my Free Time on varied Topics. Let us now look into the detail, the disadvantages of these circular letters. Potential loss of control over outsourced activities and lack of loyalty among infrequently used contractors. One of the biggest misconceptions is that organizational structures require a significant amount of planning time. Organizations choose their organizational structure based on many factors like: size, its geographic location, the manner of delivering different products and services that they will offer. As a moderately-sized company, a lot of work flow comes up to C-Level management quickly and often. Since there are not departments for the resources based on their specialties, if there won’t be a new project, resources are released at the end of the project. These circulars after the intervention of fax and emails have their fame deteriorated considerably. A circular is essentially a letter containing some important information that is distributed to a large number of people. Due to the complex pattern these types of letters follow, it becomes imminent to use complex jargon and terminologies which may not go well with all the kinds of employees in an office. You want resilience? In a matrix organizational structure, when employees are doing multiple jobs, organizations can become more dependent on them and they get the liberty to perform badly, take days off and even ask for increased pay. Many of the higher echelons think that oral communication can do in a matter of seconds through a group Skype/Whatsapp call or a normal telephonic conversation. Therefore, these types of letters lack personal emotions and appreciation that can only be conveyed through personal calls and one to one meetings. 1. Hence, the basic tenet of providing the circular itself gets scored off. What Makes a Great Workplace? These types of letters primarily focus on business issues and hold a certain degree of importance amongst employers in an office. In that case, an official circular expressing the heartfelt gratitude from the management will enact the part by describing the words of the management to its employees. Then let’s take a a serious look at your mindset. Through a circular, decentralized approach you allow those managers to delegate a leader to make more of the micro approvals and relieve the burden of daily business operations allowing your managers to focus on the bigger picture and identify areas in which we can expand or nurture important clients growing existing businesses. In the functional structure, such as shown in the following Facebook organizational chart, functions are separated into different groups, resulting in some defects.Here are the major disadvantages you must consider: Create Your Own Org Charts! You will ignore it if you are not in the marketing department. In these cases, more gentle handling and coaxing need from the management’s side. There is no more reason to send things “up to the top” for approval and sit their idle while waiting for approval. Say for example you have to invite an entire department for a meeting, or update the dress policy for the whole office – a circular will be the best mode of communication for these purposes.. Additionally, circulars also find use as advertising tools. For instance, those customers who have some considerable shares in a company maybe invites to attend their general body meetings and will also send an invitation for any functions held on their premises. Interdepartmental communication is an important aspect of both business and official communication. Group action may lead to compromise and indecision. Therefore, it becomes impossible to impersonate or duplicate the contents of a circular according to one’s needs and the biggest advantage is that these contents along with the specific date of happening can always be verified at any time and on any day. Suppose, if a group of persons or a specific team absent from the company for some purpose and if an important circular distributes throughout the company, then these persons may not know about it completely and hence, has the possibility of ignorant about the instructions provides in the circular. If there are too many divisions, coordination becomes complex and difficult. It an indispensable tool that both cost-effective and reduces the effort of management considerably. If memorandums are a record for future use and also include the aspect of taking disciplinary actions and reprimands, the circular letters are also for the same use as the disciplinary and ethical aspects but also serve as a brief formal note common for all the persons in an office. These disadvantages may not always persist in an organization. Disadvantages of Functional Organizational Structure The work can be quite one dimensional. Also, these circulars have the right to discuss the allocation of responsibilities to a specific number of persons by informing about their duration of activities and the extent of their responsibilities. 5 Easy Ways to Bring Gratitude to the Office, An Open Letter to Nonprofit News Leaders: Marathon, Not Sprint. Salary-related expenses are reduced, enabling the company to save money as well as provide better pay for its workers.2. When it comes to management you hope everyone is along for the long ride, but circumstances happen in which people move, leave, or seek opportunities and in some cases unplanned emergencies arise in which an individual must take an extend leave. organizational structure depends on the situation, consisting of the particular technology, the environment, and many other dynamic forces. Not all the employees of a particular company are literate. It is both time-effective and cost-effective: 4. As we expand to Houston in 2018, this approach will be vital to our success, allowing the members there to be adaptive to their environment and make the decisions they feel will have the biggest impact. Other than this, occasionally these circular letters even sent to some of the loyal customers or torchbearers of an office. Whether you are a one-man shop or a 250-employee organization, delegation and empowerment is what will take you to new levels. Centralized, decentralized, linear, horizontal, traditional, matrix… there are several organizational structure examples, and each one is better suited to a particular business type and process model.. 4. A disadvantage is that employees are responsible to their project team as well as to their functional areas. This can create some conflict. How to Be More Open and Flexible in the Workplace? iii. It is important to ensure each team member sees their role in a project as more than just a “doer.” Driving a sense of importance and making them know that their input is an element that is driving the direction of the organization is critical for decentralization to be effective. As a company, we decided to test decentralization in our micro processes where we felt it was hurting the iterative cycle, restricting our teams from being agile, and having the ability to make product decisions quickly. Though these disadvantages do not possess the same degree of intensity as the advantages do, nevertheless these are worthy of our consideration. Stressing any important aspect via these circulars may or may not have the desired effect among the employees as these fliers will look like an object of subjugation rather than a messenger bearing information. When there is a hierarchical organizational structure in place, teams tend to stay within their defined structures. With a circular flow everything is in constant motion allowing decisions to be made quickly and momentum to be sustained. Racial Discrimination at Workplace – How to Avoid? This means that there are less wages, fringe benefits, and so on, to pay for management. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Divisional organizational structure. The most important disadvantage of this organizational structure type there is no “home” for the project resources once the project is finished. Opinions are shared openly and objectively allowing the company to identify needs and execute quickly. 1. These circulars can extend to any amount of pages if the amount of information that to convey is voluminous. Many of the lower strata workers are those who cannot read and write and hence, if a circular reaches them they can neither assimilate the information provided nor can act according to those instructions provided there. Therefore, these tools should not be taken at their face value and should be utilized to the maximum to reap its benefits as ultimately its usage only depends on the company’s comfortability. Hence, this is a cost-effective method that identifies the target audience. When each core stage requires the approval of a manager, then a lot of momentum can get lost and at times quality can go down because the approval queue is too large and no manager wants to be the source of delays. v. Coordination of functional activities related to a product line is easy under this structure. Any form of written communication consider as a form of legal authority and these fliers are also no exemption. 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