The advantage of functionally structured organizations is that they typically achieve an efficient specialization of labor because people with specific skills can follow a career path within their department. This approach to organizations represents the adaptation of work in biology and in the physical sciences by von Bertalanffy and others.
In essence, the transnational enterprise tries to use all of its resources to their fullest potential, regardless of their country of origin. For instance, when a company sells a toaster the revenue becomes an input into the organization that is used, for example, to pay workers or buy materials.
Within each, moreover, activities would be departmentalized into subdepartments. Functional organizational structures are more traditional.
Under a matrix structure, individuals or departments have multiple reporting relationships, or at least multiple consulting relationships. When behavior is patterned, some structure is imposed on individuals. Weber believed that bureaucracies, staffed by bureaucrats, represented the ideal organizational form.
Environmental influences that affect open systems can be described as either specific or general. One benefit of a divisional structure is that it facilitates expansion because the company can easily add a new division to focus on a new profit opportunity without having to significantly alter exiting systems.
The general environment encompasses four influences that emanate from the geographic area in which the organization operates. Zanna, James M. In it, responsibilities for workers are clearly defined and behavior is tightly controlled by rules, policies, and procedures.
Of import during that period was the research of Max Webera German sociologist.