Explain traditional and contemporary organizational designs with their strengths and weaknesses.

1. 1 · Open. Organizational design is the choice of structure. Designs range from traditional to contemporary.
2. 2 · Traditional designs.
   • Simple: fast and cheap, but depends on one person.
   • Functional: savings from specialization, but weak coordination.
   • Divisional: results focus, but duplication.
3. 3 · Contemporary designs.
   • Team: empowerment, but unclear chain of command.
   • Matrix and project: flexible, but two bosses and conflict.
   • Boundaryless (virtual, network): flexible and low cost, but less control.
   • Learning organization: continuous learning, but knowledge sharing is hard.
4. 4 · Draw two charts. [A functional chart (MD → production, marketing, finance) beside a matrix grid (functions down the side, projects across the top)]
5. 5 · Factors in choosing. Strategy, size, technology and environmental uncertainty; flexible work and contingent workers.
6. 6 · In Sri Lankan business. Hayleys' business sectors work like divisions; inside a business, work is usually grouped by function.
7. 7 · Close. Firms mix designs: stability from traditional forms, flexibility from contemporary ones.

Scoring tip: A three-column table (design, strength, weakness) answers most of this question in little space.