Preview

Matrix Structure - Superior to Divisional and Functional Structures

Powerful Essays
Open Document
Open Document
1254 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Matrix Structure - Superior to Divisional and Functional Structures
A matrix structure is superior to a functional and a divisional structure. Please, comment on this statement. In your answer, pay special attention to advantages and disadvantages of each structure and discuss them systematically.

"If the body be feeble, the mind will not be strong" (Thomas Jefferson, 1786). If the foundation something is built upon is weak, the whole object will be adversely affected. Likewise, in an abstract manner, it is with any kind of model or structure. Looking at it from a business perspective, one wants to find the best possible structure or model to fit an organization. Organizations exist with a variety of different structures. The main structures are the "divisional", the "functional" and the "matrix" structure.
This essay shall analyze whether the matrix structure is a more sophisticated organizational structure than the functional or divisional structures.
In order to evaluate whether a matrix structure is indeed superior, at first the different structures will be introduced and discussed, depicting supporting and opposing arguments for each structure. The findings will be synthesized and evaluated thereafter.
Due to the length of the essay, the focus shall merely lie on the main aspects of the matrix structure and not go into closer detail on the variations of matrix structures.

Using a divisional hierarchy, an organization is divided into divisions where all activities according to a specific product group, type of customer, process or market are grouped together (Stanford 2007). For example, a company may have a European and an American division working independently with all respective departments. The managers of the departments would report to the supervisor in their country.
In contrast, using a functional hierarchy, an organization is divided into departments according to their functions (Anand and Daft 2007, p. 330). For instance, a company may have a European and an American division with functional departments

You May Also Find These Documents Helpful

  • Powerful Essays

    BUSI690 Rothaermel Ex 3

    • 1270 Words
    • 4 Pages

    The relationship between an organization’s strategy and structure are extremely important because it “directly impacts a firm’s performance” (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in order of least to most complex according to Rothaermel (2013), are: (1) simple, (2) functional, (3) multidivisional, and (4) matrix.…

    • 1270 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals. Organizations large and small can achieve higher sales and other profit by properly matching their needs with the structure they use to operate. The three main types of organizational structures are functional, divisional, and matrix structure. Organizations have to pick the structure that will work well with their company. These things do not come all at once overnight, companies have to try and see what works for them.…

    • 1190 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Functional structure is departmentalization around specialized activities such as production, marketing, and human resources. Divisional structure is departmentalization that groups units around products, customers, or geographic regions. Matrix structure is an organization composed of dual reporting relationships in which some managers’ report to two superiors –a functional manager and a divisional manager. The most effective structure is the matrix structure because it consists of the other functions, both of which would fail without them. Organizations can determine if they are structured in the most effective and efficient manner by analyzing how their business…

    • 507 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Mgmt 3610 Week 1 Summary

    • 466 Words
    • 2 Pages

    Functional departmentalization can be found in both public and private organizations. Some examples of organizational structure departmentalization are Human Resources, Accounting, Sales and Marketing, and Production. These departments are put into place to ensure efficiency, and increase production within the organization. Structure helps the organization to clarify accountability and responsibilities within the team. Structure should be aligned with the organization’s strategy in order to be organized in a way to best serve the…

    • 466 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The organizational structure of the company that I work for leans more toward a hierarchical culture in a functional and decentralized structure. Our organization groups their departments by the functions that they are performing. For example, the departments…

    • 1140 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Today, most companies have an organizational structure, which gives a lot of character to the company and allows the consumers to see what the company values. Certain companies may have an organizational structure such as a divisional structure which is basically where functionalities of that company are divided based on the “functional” areas. However, there is also a matrix structure. A matrix structure consists of placing employees in an area based on the functional and divisional area.…

    • 1088 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    dow coring case study

    • 617 Words
    • 3 Pages

    The matrix structure as defined by David Needle (2010 p. 185) is a combination of the customer orientation of the project team and the economies of scale of the functional structure which focuses on specialist orientation and the product or market focus of the multidivisional structure which enforces product grouping. The matrix structure encourages individuals to work across teams and projects as well as within their own departments or functions in order to accomplish a main goal. For example, a project/task team established to develop a new product may include design specialists as well as those that obtain marketing and financial skills.…

    • 617 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Organizational structure is described as the establishment of authority and the arrangement of the work group. Classical theorists developed the concept of departmentalization as a means to maintain command, reinforce authority, and provide a formal system for communication (Sullivan & Decker, 2009). The design of an organizational structure can be vertical or horizontal. Work is subsequently divided, and perhaps subdivided further. Tasks are specified and assigned to workers who fit into a plan.…

    • 1256 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Greggs Swot Analysis

    • 1461 Words
    • 6 Pages

    This type of structure combines the traditional departments seen in functional structures with project teams. In a matrix structure, individuals work across teams and projects as well as within their own department or function.…

    • 1461 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    8. Summarize the theorists' arguments concerning the practical institutional theories of (1) functional, (2) product, and (3) matrix forms of organization. Produce a graph of each of these forms of organization.…

    • 1267 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Organizational Structure

    • 1093 Words
    • 5 Pages

    A divisional structure groups its divisions according to the specific demands of the battlefield. Unlike functional organizational structures where the different organizational functions of the company strive to achieve activities satisfying all customers, markets and products. The higher degree focuses is specialization within a specific division, so that each division is given the autonomy and resources, to swiftly react to changes in their specific area of operations. Each division has all the necessary resources and functions within it to sustain the demands put on the division (BusinessMate.org, 2010).…

    • 1093 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Submission

    • 368 Words
    • 2 Pages

    i) The pakistan’s HRIS software id complicated which requires a lot of familiarization to become comfortable with.…

    • 368 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Management Structures

    • 332 Words
    • 2 Pages

    Matrix organization this s a structure that is atypical because it brings employees and managers together from different departments working towards accomplishing a goal. The advantages of this structure is that it pools people together who have the same skills to work in a specific area. It also helps to coordinate resources in a way that helps them effectively on different projects and information is flowing throughout the organization from top to bottom. The disadvantages of this structure is that so many problems can arise as well as conflicts within the group.…

    • 332 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Abb Case Analysis

    • 908 Words
    • 4 Pages

    * Matrix structure provides speed and flexibility which results in efficient use of the company’s resources.…

    • 908 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The matrix structure encourages a democratic leadership style. This style incorporates the input of team members before managers make decisions. The ability to contribute valuable information before decisions are made leads to employee satisfaction and increased motivation. In a matrix structure, each employee brings his expertise to the table. Managers are involved in the day-to-day operations, which allows them to make decisions through the viewpoint of employees.…

    • 342 Words
    • 2 Pages
    Satisfactory Essays

Related Topics