1. Functional structures
   1. Definition
      1. groups together people with similar skills who perform similar tasks.
   2. Advantages
      1. Economies of scale make efficient use of human resources.
      2. Functional experts are good at solving technical problems.
      3. Training within functions promotes skill development.
      4. Career paths are available within each function.
   3. Disadvantages
      1. difficult to pinpoint responsibilities for things such as cost containment, product or service quality, and innovation.
      2. the sense of working for the good of the organization as a whole can get lost.
      3. get trapped in functional career niches that limit career-broadening experiences in other areas.
      4. Potential for functional chimneys or silos, where departments become isolated and focused only on their own goals.
2. Divisional structures
   1. Definition
      1. groups together people working on the same product, in the same area, or with similar customers.
         1. Product structure
            1. Good or service produced
         2. Geographical structure
            1. Location of activity
         3. Customer structure
            1. Customer or client serviced
         4. Process structure
            1. Activities part of same process
   2. Advantages
      1. Expertise is focused on special products, customers, or regions.
      2. Better coordination exists across functions within divisions.
      3. There is better accountability for product or service delivery.
      4. It is easier to grow or shrink in size as conditions change.
   3. Disadvantages
      1. costly when economies of scale are lost through the duplication of resources and efforts across divisions.
      2. create unhealthy rivalries where divisions end up competing with one another for scarce resources, prestige, or special top management attention.
3. Network structures
   1. Definition
      1. uses IT to link with networks of outside suppliers and service contractors.
   2. Advantages
      1. Lower costs due to fewer full-time employees.
      2. Better access to expertise through specialized alliance partners and contractors.
      3. Easy to grow or shrink with market conditions.
   3. Disadvantages
      1. management complications of having to deal with a vast and sometimes shift ing network of contracts and alliances.
      2. deal with uncertainties associated with reliance on outside contractors for key supplies and services.
      3. When one part of the network breaks down or fails to deliver, the entire system can break down.
      4. too much reliance on outsourcing might have hidden costs, including poor product and service quality.
4. Matrix structures
   1. Definition
      1. combines functional and divisional approaches to emphasize project or program teams.
   2. Advantages
      1. Performance accountability rests with program, product, or project managers.
      2. Better communication exists across functions.
      3. Teams solve problems at their levels.
      4. Top managers spend more time on strategy.
   3. Disadvantages
      1. lead to power struggles if functional supervisors and team leaders make confusing or conflicting demands on team members.
      2. costly because they require a whole new set of managers to lead the cross-functional teams.
      3. team meetings can be time consuming.
5. Team structures
   1. Definition
      1. uses permanent and temporary cross functional teams to improve lateral relations.
   2. Advantages
      1. Team assignments improve communication, cooperation, and decision making.
      2. Team members get to know each other as people, not just as job titles.
      3. Team memberships boost morale and increase enthusiasm and task involments.
   3. Disadvantages
      1. team members sometimes have to deal with conflicting loyalties between their team and functional assignments.
      2. Teamwork always takes time.
      3. the quality of results oft en depends on how well the team is managed and how well team members gel.
      4. invest heavily in team building and team training, as well as special off ice space designs to encourage teamwork.