As different centres serving different faculty will have diverse objectives, it will be difficult to set the same goal for all, let alone communicating of similar objectives between the faculties. Also, there may be unhealthy competition between the different faculties. There will also be duplication of non-production staff in different faculties. Functional economics of scale will be limited as a result. Also, this means that the manager becomes less skilled as he or she does not have chance in dealing with students of other faculties. Section C: Efficiency for You Consulting Centralized Organizational Structure
The consultant of Kaye West University wants to remove the 6 student service centres from different faculties to a central administration, and this shows that the consultant wants to change the student service centres to a centralized organizational structure. CentralizationcentralizationThe degree to which decision-making authority is concentrated at higher levels in an organization. is the degree to which decision-making authority is concentrated at higher levels in an organization. There is little or no delegation of decision-making authority given to the lower management level (Web Books).
Since the service centres will be changed to one university-wide centre, decisions will be made by the authorities in that central administration. Functional Work Unit Organizational Structure Functional work units limit attention to one function and that is what the consultant has recommended the school to do (Cohen & Bailey 1997). It plans to remove the student services from the 6 faculties and incorporate them into one central administration. Hence, by doing this, the consultant wants the University’s central administration to be the only functional work unit that serves the students.
Advantage and Disadvantages of using Functional and Centralized Organizational Structure With all employees specializing in one function, they get to specialize in a common skill and there will not be a need to multi-task several different activities at the same time. In the new organizational structure that the consultant has proposed, fewer employees will be required to staff the student services and the staffs will be able to focus in one area only. At the same time, lesser employees will be needed to staff the services and this will significantly cut cost.
In addition, they will know their respective job scope and they will use similar processes in centralized student service centre, so it is an efficient and effective way of operating (Fontaine 2006). With the single university-wide centre, all the support services will be standardized. All the students will get the same service throughout the school. Hence, the students in different faculties will not feel that they are receiving unfair treatment. However, there are some disadvantages of using functional organizational structure.
The focus of functional organizational structure is often on efficiencies of operation, at the expense of creativity and customer value (Fontaine 2006). With one centralized unit for each support service, it may not be able to give the same level of high quality and customized service to its students as is traditionally provided. Furthermore, under the new organizational structure, the students may not get timely and relevant support services. Since there is only one centralized unit for each support service, it may not be able to cater to all the students’ needs at the same time. Section D: Our evaluation