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Discuss the characteristics of the functional, divisional, and matrix structures? Discussion the characteristics of the virtual structure, the team structure, and the circular structure? How might downsizing affect organizational structures and employees? What are the behavioral implications of different organizational designs?
Increased Formalization: Roles and processes may become more rigid to compensate for the loss of institutional knowledge and specialized expertise.
Victims (Employees Laid Off): Experience immediate financial and emotional distress, including loss of income, self-esteem, and career disruption.
Survivors (Employees Retained): Suffer from "survivor syndrome," characterized by:
Low Morale and Commitment: Loss of trust in management and the organization.
Increased Job Insecurity and Stress: Fear of future cuts and increased pressure from a heavier workload.
Reduced Productivity: Stress and burnout from having to absorb the responsibilities of departed colleagues, potentially leading to lower quality work and innovation.
Downsizing (Rightsizing) is the planned effort to make an organization leaner by strategically reducing the workforce.
Flattening: Downsizing often results in the removal of management layers (vertical dimension), leading to a flatter organizational structure with wider spans of control (more direct reports per manager).
Increased Centralization (Paradoxically): While some authority may be pushed to lower levels due to fewer managers, critical decisions may become more centralized at the top, as senior management seeks tighter control during times of instability.