Organizational Models: Structure, Principles, and Advantages

Organizational Models

Simple Models

These models can be either simple or hierarchical linear models. They are widely used by SMEs and are based on the principles of authority, hierarchy, and worker specialization.

Advantages:

• Simple and well-defined responsibilities.
• Speed of decision-making.

Disadvantages:

• Rigid and inflexible.
• Excessive concentration of power in management.
• Lack of employee motivation.
• Lack of expertise of managers covering too many fields.

Adhoc Model

This model focuses on the principles of motivation and participation. The objective is to have employees motivated to participate in decisions and carry out tasks. It requires a good system of communication and information.

• No particular structure; it varies according to the company and adapts to its characteristics.
• Little formal and structured.
• Highly decentralized.
• Working in teams and groups.
• Management by objectives system.

Functional Model

This model features a horizontal design where specialists are assigned to each task. It is based on the principles of specialization and division of labor (Taylor system). Employees are grouped by function into specialized task groups (departments, divisions, etc.).

Advantages:

• Greater specialization and productivity due to specialists performing tasks.

Disadvantages:

• No control panel.
• Potential conflicts.
• Possibility of mismatch if there are several bosses.

Complex Models

Linear Model with Advice (Staff)

Also known as the mixed or linear-functional model. It features a hierarchical structure with a central support department for advice.

Advantages:

• Maintains authority with increased specialization.

Disadvantages:

• Slower decisions due to the need to consult specialists.
• Possible conflicts between departments.

Divisional Model

This model is used by large companies and multinationals. The objective is greater autonomy and speed in decision-making through greater decentralization. Operating divisions are created independently.

• Criteria for divisions can be geographical area, products, markets, customer types, etc.

Disadvantages:

• Achieving overall company objectives.
• Coordination challenges.

Committee Model

This model involves cooperation between several people who make collective decisions, sharing authority and responsibility. Decisions are made jointly by all department heads.

Advantages:

• Increased participation and employee integration.
• Decisions are made from a "global" point of view.

Disadvantages:

• Slow decision-making.
• Conflicts of authority.
• Decisions by "commitment or friendship."

Matrix Model

This model is common in large industrial enterprises. It combines at least two organizational variables (e.g., roles and projects) linked by authority relations. Specialists from different parts of the organization collaborate on projects or issues.

• Dual authority: each person takes orders from both the project director (horizontal) and the functional department head (vertical).

Advantages:

• Flexible.
• Useful for large companies.
• Allows tackling complex problems and projects.

Disadvantages:

• Need for coordination.
• Potential conflicts of authority.