\fRunning Header: MANAGEMENT STUDENT'S NAME LECTURER'S NAME COURSE TITLE DATE OF SUBMISSION 1 Running Header: MANAGEMENT Organizational Structure The current organizational structure consists of production units operating as separate entities but working towards a similar goal. Design CEO Sales Production Improving the current functional structure 2 Running Header: MANAGEMENT To improve the current functional structure, there is need to choose a better and more complex organizational structure. There is also a need to decentralize authority by introducing lower-level managers to increase supervision and enhance communication channels. Furthermore, there is need to promote interaction between the different departments so as to promote employee innovation. This can be achieved using structures such as the Multidivisional System, the Matrix System and the Product Team Structures. Pros and Cons of moving to a Multidivisional, Matrix, and Product Team structures The Multidivisional System A multidivisional structure involves re-organizing workers in to smaller units, which are more manageable and are able to work faster. The Pros 1. It is consumer oriented, meaning production is geared towards providing the final product for the consumer 2. It would decrease the overall time it would take to develop the website, thereby satisfying the environmental needs of the company The Cons 1. It is not flexible because every employee is confined to a specific task. 3 CEO Running Header: MANAGEMENT Divisional Manager Sales Department Manager Sales Divisional Manager Production Department Manager Production Divisional Manager Design Department Manager Design The Multidivisional Structure The Matrix Structure In this system, managers group people in two ways: by function and by product. This allows for employees to learn from each other to become more skilled thereby increasing productivity. The Pros 1. It allows employees to learn from one another 2. It is flexible because employees are not confined to specific tasks The Cons 1. The employees are required to report to the functional manager and the product team manager, which may be confusing for them. 4 Running Header: MANAGEMENT General Manager Production Manager Functional Manager Production Group Design Group Sales Group The Matrix Structure The Product Team Structure This structure allows employees to work cross-functionally, but unlike the matrix system, the employees only have to respond to one manager. The Pros 1. The employees have only one manager to report to, which is easy and simple 2. Interaction between departments allows for employee innovation leading to the development of new products. The Cons 5 Running Header: MANAGEMENT 1. The managing roles become informal and managers are seen as mentors or informal advisors CEO Functional Manager Sale Production Design The Product Team Structure The Product Team Structure is the best alternative among the three. This is because, the multidivisional system is not flexible and does not allow for diversity or innovation and the matrix system structure is confusing because employees have to respond to two managers. 6