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Professional Practices: Assignment 01 Concept of Organisation Structure

The document summarizes and compares the key differences between a functional organization structure and a product organization structure. A functional structure groups employees by their specialized function, while a product structure groups them by product lines. Some key differences are that a functional structure can make it difficult to assign responsibility but is more economical, while a product structure makes responsibility clear but duplicates resources. The document provides a table and diagrams to illustrate the differences between the two common organization structures.

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faiza
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59 views

Professional Practices: Assignment 01 Concept of Organisation Structure

The document summarizes and compares the key differences between a functional organization structure and a product organization structure. A functional structure groups employees by their specialized function, while a product structure groups them by product lines. Some key differences are that a functional structure can make it difficult to assign responsibility but is more economical, while a product structure makes responsibility clear but duplicates resources. The document provides a table and diagrams to illustrate the differences between the two common organization structures.

Uploaded by

faiza
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Professional Practices

Assignment 01

Concept of Organisation Structure

Submitted By: Faiza Mushtaq (2017-BSE-065)


Submitted To: Mam Marium Jalal
Semester: VI B
Date: 31st March 2020

Fatima Jinnah Women University, Rawalpindi


Functional Organisation Structure vs Product Organisation Structure

Functional Organisation Structure Product Organisation Structure

1. This structure is described as an This structure is defined as an


organisational structure wherein; the organisational structure that clubs together
employees are classified based on their area various functions based on product lines or
of specialisation. services provided by organisation 
2.
The specialisation is based on functions. The specialisation depends on product
lines.
3. It is difficult to fix responsibility, i.e. Suppose It is easy to fix responsibility, as every
a product does not perform well in the market, product of the organisation has separate
then it is difficult to identify, that which departments.
department (production, sales, finance, etc.)
Of the organisation is not doing well.

4. Managers do not have autonomy of decisions Managers have autonomy of decisions.

5. Economical, as the functions are not repeated. Expensive as it involves reputation of


resources.
6. Appropriate for small and simple Appropriate for Large and dynamic
organizations. organizations.

7.  Strengths  Strengths

Maximizes functionality performance Clear accountability


Broader sills development
Cultivates specialists Respond quickly to external environment
changes
8.  Weakness  Weakness

Restrictive organisational view Resource duplication

Slow response Inhibits specialist’s growth

Poor accountability Difficult product integration


Diagrammatical view

Functional Organisation Structure

Product Organisation Structure

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