The Different Types Of Organization Structures: Matrix Structure

May 14th, 2009 Comments off
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Append below describes the advantages and disadvantages of the following type of organization structure:

· Functional Structure

· Divisional Structure

· Matrix Structure

MATRIX STRUCTURE

Matrix structures are often found in organizations pursuing growth in dynamic and complex environments

Major Advantages Of Matrix Structure

· More interfunctional cooperation. The matrix provides a way of coordinating different functional contributions to serve specific program needs

· Flexibility. The matrix makes it easier to add, remove and change the focus of teams to reflect new program directions or basic changes in business size.

· Customer service. The customer or client of a matrix structure always has a program manager available to respond to questions, provide status reports and address problems.

· Better accountability. The matrix clearly identifies program managers who can be held accountable for performances results; this helps top managers stay informed about what is going on and why

· Improved decision making. The matrix forces decision making and problem solving down to the team level, where the best information exists.

· Improved strategic management. The matrix helps keep top managers free of routine decisions and enables them to devote their time to more strategic management concerns.

Major Disadvantages Of Matrix Structure

Include:-

· Power struggles, which may result from the two boss system.

· Team members may become too focused on themselves and develop “groupitis ” losing sight of important goals.

· Often creates increased costs as overhead rises in the form of extra salaries for program managers.

Also refer to articles on Functional & Divisional Organization Structures

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