The structure of an organization is vital to an organization's success. Organizational Structures such as Departmentalization, Matrix, Project Team and Collegial Model can ensure that each company reaches their goals.
Departmentalization Structure can be used in all types of organizations. The functions are developed to reflect the objectives and activities of the organization. As an organization develops, employees are divided among departments according to their specialized skills so that various tasks can be completed. A major advantage of Departmentalization is putting a group of people together who specialize in a certain area of business that will allow the organization to expand their profits. A disadvantage of Departmentalization would be the cost. In order for each department to run smoothly, a manager or supervision would have to be hired to oversee the workload of each individual department.
Matrix Organizations employ individuals within various departments with similar skills who work on specific tasks. One advantage of Matrix Organizations is that this structure allows for a more responsive, and efficient exchange of information inter-departmental. This exchange of information allows the organization to achieve its goals. (Encyclopedia of Business, 2nd Ed). The disadvantage of this structure is that it's very hard to manage. Communication between various managers in a department can cause confusion or discord amoung the employees.