In the U-form organization. U stands for Unity, It is also called as “functional design as it relies exclusively on the functional approach to departmentalization. Members of the organization who perform the same functions arc grouped together into departments. Such organization requires perfect co-ordination to operate smoothly aiming the various departments, since each department is highly dependent on another.
The U-Form design has several advantages. It allows an organization to staff each department with experts; it also facilitates wide spans of management and helps the Managing Director to maintain centralized authority.
However, the U-form design shows decision-making and employees within each department may concentrate on their own function forgetting overall organizational goals. It tends to make it hard for organization to monitor the performance of individual managers within each functional area. When the organizations grow, they often find that the disadvantages of the U-form tend 10 become more significant and adopt different designs as they evolve through their life cycles.
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