The proposed structure will tend to be deficient in the sense that there will continue to remain a communication gap between varied divisions (Fritz 1996). Besides, the employees allocated to varied divisions are bound to overspecialize in the specific functions and will develop narrow viewpoints and perspectives, which will not be in harmony with the global aspirations of the Group (Galbraith 2001). Besides, the employees may still prefer to place divisional goals over organizational goals. To some extent, this problem could be solved by methodically transferring professionals from one division to another, from time to time (Galbraith 2001).
Before a transition to further evolved organizational structures, a combination of divisional and functional structure will certainly be a step in the right direction. While doing so, the Group can recognize and group the respective products it intends to sell and continue with and the specific functional sets common to all these products. So, the incorporation of a functional structure in the existing divisional structure will certainly prove to be a viable and efficient transition strategy. Matrix Structure- The Eventual Choice Incorporation of a matrix structure within Lloyds Banking Group will enable the segmentation of the employee and managerial base in terms of products and functions (Gottlieb 2007).
This will allow for the exploitation of the human resources in the organization with respect to their functional and managerial capabilities. This will be a decentralized organizational structure that will allow for the fabrication of spontaneous teams as per the pressing challenges that will exploit the strengths of a functional model while ameliorating its weaknesses (Gottlieb 2007). As per the requirements of a specific situation, the Group can opt for a weak, balanced or a strong matrix team (Gottlieb 2007).
This will to a great extent do away with the bulky divisional model, and make the Group more horizontal, bringing the focus back to the broader organizational goals. This structure will also give way to vertical and horizontal channels of communication within the organization (Martin 2005).
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