The organization is able to capitalise on the advantages of both functional and product departmentalization. The organization lacks a clear chain of command. Project groups may take longer to finish work and be prone to conflict. The organization has to devote more resources to coordination. A global organization design is needed by organizations that are moving toward or have achieved multinational status.
Most organizations use designs that are hybrids of the organization designs discussed above.
The key point to remember is that there is no one best design for all organizations. Employee participation and work teams, organizational flexibility, and various socio-cultural factors also have an impact on organization design. Traditional models of organization design often took a topdown approach to management. As managerial philosophy has changed, American firms have begun to increase employee participation at many organizational levels. This participation is often achieved by using work teams, groups of employees who are allowed to function as a unit with very little and sometimes no supervision.