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The Top 10 Key Points ...

  • 1. Structuring business around specialized clusters or functions has been in existence since the birth of bureaucracy.
  • 2. Despite the deliberate decision of many businesses to try moving away from the functional model, it’s more challenging to escape this hierarchical power trap than it ought to be.
  • 3. The functional model is simple to comprehend, administer, alter, and illustrate.
  • 4. The main downside of the functional model is its inherent inflexibility. Barriers and conflict are commonplace, particularly between departments.
  • 5. The matrix model is supposed to be a lithe working arrangement with negotiated task alignment between project team leaders and functional managers.
  • 6. But with the matrix model, there are frequent cases of divided loyalties, where the employee has to answer to two bosses: the project manager and their functional manager. It can degenerate into a tussle for power and territory.
  • 7. In the product model, specialists from various disciplines, instead of being scattered across a number of separate and distinct functional offices, are gathered into offices based on product line, customer type, or project.
  • 8. The limitations of the product model negatively affect the company’s capacity to innovate and slows processing speed; two dimensions of agility.
  • 9. The customer-centric model is structured on a series of concentric circles.
  • 10. The customer-centric model is not a perfect model. But it’s structured to enable organizational agility.


  • 1. Baker, T. (2014). Attracting and retaining talent: Becoming an employer of choice. London: Palgrave Macmillan.
  • 2. Seet, D. (2009). Power: The functional manager’s meat and project manag- er’spoison? manager%E2%80%99s-meat-and-project-manager%E2%80%99s-poison/
  • 3. Ibid.
  • 4. Meyer, P. (2015). Starbucks coffee company’s organizational structure. tarbucks-coffee-comp any-organizational- structure
  • 5. Devaney, E. (2004). The pros and cons of 7 popular organizational structures.
  • 6. Jantsch, J. (2004). Fire the CEO. php
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