The question is here below: 1. Rarely, if ever, do they get to do something outside their scope of specialization. Vertical flow provides for detailed disciplinary information to flow from project to project, and to various levels of management. All the departments are involved with these product lines, so coordination between and among all of them. Types of Organizational Structure There are four general types of organizational structure that are widely used by businesses all around the world: 1. Under each vice president, you find two or more department managers: finance, customer service, the production team and the research and development team.
It is suggested that moving into a matrix can lead to the strangulation of the decision process. However, there are usually some employees who relate so strongly to the overall project, that they perceive the project manager to be the real boss. This type of organization is about to minimize the difference between the strength and weakness of Projectized and functional organization. Each of the three division is in charge of a different set of tasks: environmental responsibilities, nuclear-energy responsibilities, or research responsibilities. Also, each division has a unique purpose which makes it difficult to be managed. Recent trends that aim to combat these disadvantages include the use of teams that cross traditional departmental lines and the promotion of cross-functional communication. Making the Matrix Work After examining the disadvantages and problems of working in a matrix organization, one may view the problems as insurmountable.
Organizational structures define the hierarchy or an organization, and determine the way information flows within it. A strong project manager may place undue emphasis on time and cost constraints, while a functional manager may concentrate on technical excellence at the expense of schedules. Each department does not have to spend on tools, equipment and manpower, since they can source them from other departments. These broad areas may be further subdivided, as when administration is divided into human resources and accounting units. However, it also may evidence itself by backbiting, foot-dragging and project sabotage. This may sometimes lead to conflicts when prioritization of work is considered. Each division has its own set of functional units like research, manufacturing, marketing etc and is completely self-contained.
As a result, some argue that the modularity of a firm should be limited to the extent the flexibility it affords results in gains. Matrix Structure The matrix structure starts with the functional structure. Functional Structure Under this structure, employees are grouped into the same departments based on similarity in their skill sets, tasks, and accountabilities. This can be shown by the model in figure 9. The matrix does not require that all business decisions be hammered out in group meetings. Unlike, the divisional organisational structure wherein there is the repetition of resources, and so it is costly. The various programs also have to compete for budget dollars Decide How to Set up Your Business Structure No matter whether you choose a functional or a divisional organizational structure, use a matrix or just allow your company to operate as a holacracy, make sure every staff member knows to whom they report and what duties they should expect to perform.
The project manager will have authority over the administrative part of the project, such as what to do, follow-up on the schedule, evaluate the performance, etc. This will be true whether the achievement is a ballistic missile, an aircraft, a power plant, or the introduction of a new soap into the marketplace. Advantages of a Matrix Structure Many are opting to adapt the matrix organizational structure because it is deemed to be the most beneficial to them. Unfortunately, making decisions in hierarchical or pyramid-shaped organizational structures often leads to never-ending discussions of responsibility without team members ever taking any decisive action, so explore the benefits and drawbacks of each structure before settling on the one that works best for your venture. This charter should state the purpose of the project and spell out the responsibilities and authority of the project manager. Assuming you were given a question like this: A construction company which undertakes building projects as and when they are contracted to is looking to hire a consultant to help them develop an organizational structure. Cost Economical, as the functions are not repeated.
At the same time, the upper levels are likely to not realize if there are problems going on the lower levels. This increases efficiency by eliminating guesswork and duplication of effort. The matrix organization structure usually exists in large and multi-project organizations, where they can relocate employees whenever and wherever their services are needed. Suppose an organisation produces and sells four products, A, B, C, D. Low to Medium toproject manager medium. Functional leaders take the product vision and requirements from the product leaders, perform feasibility study and take the responsibility of mobilizing their technical core teams.
The divisional structure is more naturally horizontal. Project management was primarily conceived to prevent this problem, but it can be a problem if the management system keeps the project manager from making any decisions without consultation with functional and top management. The lines on the chain of command are blurry, further confusing the employees since they do not have a clear idea on who is in charge or in control. Therefore technology and know-how is not lost when a project is completed. Today, it is rare to find a real-world problem that is unidisciplinary. Each group of specialists can therefore operate independently with management acting as the point of cross-communication between functional areas.
Thus, more often than not, employment in an organization that uses this type of structure is based on technical qualifications. A manager in a matrix organization has two or more upward reporting lines to bosses who each represent a different business dimension, such as product, region, customer, capability or function. Like other organizational structures, the network structure has its advantages and its disadvantages. High instances of worker dissatisfaction Conflicts tend to awaken in employees or workers feelings of dissatisfaction and dismay. An organisational structure so designed that it is bifurcated into semi-autonomous divisions on the basis of product, service, market, etc. Some employees usually work under more than one boss usually two in a matrix structure.
Some organizational problems may not be brought on by changing times or new employees; it might be the result of an old structure that needs tweaking. In this structure, managers coordinate and control relations that are both internal and external to the firm. The lesser the degree of hierarchy, the flatter the organization is. In essence, each functional department within the matrix contributes employees to each division to work on divisional projects. A clear definition of top management and other specialized departments sets the expectation of who reports to who, and how they can communicate with one another.