H&M Structure

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H&M is currently structured as a matrix organisation this is due to their widespread departments all over the world. A matrix organisation is horizontally laid out and product-based. The standard way of managing a matrix-organised company is to have their employees report to more than one manager at a time. It is common to different managers to come together in order to accomplish a common goal and avoid duplications of for example products, marketing and human recourse etc. Thanks to this the departments work closely together, communicate more with each other and are better in solving issues. This kind of information exchange makes the matrix organization more flexible and quick in their response to customer needs and market changes. The matrix structure encourages employees and managers to communicate with each other on the same level. This means that team members can make suggestions before managers make decisions. It increases the employee satisfaction and motivation because they feel valuable and important part in the decision making process. When all Employees are a part of the decision making process more knowledge can be used in the innovative process in the company. The managers are able to use their employee’s point of view in day-to-day decision-making. 1.1 Advantages and Disadvantages of the Matrix Grouping

Potential advantages of the matrix grouping according to Davis and Lawrance (1977) various from company- to- company: •Improved coordination of diverse activities which does not rely on cooperation between separate functional heads but is undertaken by the product manager •The multiple perspectives of different functions are brought to bear on problems and this tends to give fast and highly innovative solutions •Efficient utilisation of scarce resources and improved lateral communications. Potential disadvantages according to Davis and Lawrance 1977: •People never have fewer than two bosses, which can give rise to dual loyalty issues....
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