15 June 2016, Wednesday, 11am. Economic Tuitorial 4

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Draw out the organization structure in your company, explain the pros and cons of the structure.



Answer

This hierarchical structure is following the layout of pyramid

Advantages
1.     Level of leadership within the chart, authority and responsibility is obvious
2.     Negotiator narrow their field of focus and become the experts like Sub Sale and Project
3.     Opportunities for promotion motivate the negotiator to perform well
4.     Negotiator become more loyal when have higher position 

Disadvantages
1.     Communication between higher and lower level is tends to be less effective
2.     Own department will make decision that benefit its own interest rather than whole organization.
3.     Feedback, decision making and respond time will be longer among the since have to go through so many level.
4.     Cost is higher when by each level is increasing

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