Predictably, matrix structures also have potential disadvantages. Improved strategic management top managers are freed from lower-level problem solving to focus time on more strategic issues.
Better performance accountability through the program, product, or project managers. Better customer service there is always a program, product, or project manager informed and available to answer questions. Increased flexibility in adding, removing, or changing operations to meet changing demands. Improved decision making problem solving takes place at the team level where the best information is available. The potential advantages of matrix structures include: Better communication and cooperation across functions. Advantages and Disadvantages of Matrix Structures This is accomplished by creating permanent teams that cut acrossįunctions to support specific products, projects, or programs.
It is an attempt to gain the advantages and minimize theĭisadvantages of each. The matrix structure, often called the matrix organization, combines the functional andĭivisional structures. Resources and top management attention, and as they emphasize division needs over the goals of the organization as a whole.
They can also create unhealthy rivalries as divisions compete for Greater ease in changing size by adding or deleting divisions.ĭivisional structures also have potential disadvantages such as they can reduceĮconomies of scale and increase costs through the duplication of resources and effortsĪcross divisions. Expertise focused on specific customers, products, and regions. Clear points of responsibility for product or service delivery. Improved coordination across functional departments. Advantages and Disadvantages of Divisional Structures The potential advantages of divisional structures include: More flexibility in responding to environmental changes. A process structure groups together jobs and activities that are part of the same processes. 4) Process StructuresĪ work process is a group of related tasks that collectively creates something of This is a common structure in the consumer products industry.Ĭustomer structures are also useful in services such as Banks and government agency for example. 3) Customer StructuresĪ customer structure groups together people and jobs that serve the sameĬustomers or clients. 2) Geographical StructuresĪ geographical structure groups together people and jobs performed in the same location. 1) Product StructuresĪ product structure groups together people and jobs focused on a single product or service. Use the divisional focus to overcome the disadvantages of a functional structure, such as Members of functional departments share technical expertise, interests, and responsibilities.ĭivisional structures are common in complex organizations with diverse operations thatĮxtend across many products, territories, customers, and work processes. Functional structuresĪ functional structure groups together people with similar skills who perform similar Informal structure would cut across levels and move from side to side.Ī tool known as social network analysis or sociometrics identifies the informal structures and their embedded social relationships that are active in an organization. Interacts with whom, regardless of their formal titles and relationships. If the informal structure could be drawn, it would show who talks and Informal structure is the set of unofficial relationships among an organization’s Levels of management-Vertical layers of management are shown. Major subunits-Positions reporting to a common manager are shown. Communication channels-Lines show formal communication flows. Supervisory relationships-Lines show who reports to whom. The basics of an organization’s formal structure includes: Division of work-Positions and titles show work responsibilities. How the organization is intended to function or the official structure of the organization. Lines of authority and communication between them. A typical organization chart identifies positions and job titles as well as the Formal structuresĪn organization chart describes the arrangement of work positions within an Organization structure is a system of tasks, reporting relationships, and communication linkages. Plans are created, the manager’s task is to see to it that they are carried out A. Organizing is the process of arranging people and other resources to work together toįigure 11.1 shows the central role that organizing plays in the management process. Chapter 11 : Fundamentals Of Organizing (Dasar-dasar Pengorganisasian) 1.