Matrix departmentalization uses cross-functional groups to work on both products and functions. Lack of Leadership Managers leading functional departments can succumb to the same isolationist forces as their subordinates, narrowing focus to departmental rather than company concerns. Each department tends to increasingly communicate based on its own practices and experiences. For example, lines of accountability may be less clear, and reliance on external vendors can be quite high. For example, a diagram of a matrix model might show divisions, such as different product groups, along the top of a table See Figure 1. The marketing division, for example, might encompass sales, advertising, and promotion departments.
Functional Departmentalization The most common organization method, especially in smaller companies, groups jobs by function; for example, the marketing department, the finance group and the research and development team. First, self-containment tends to improve the ability for internal coordination within the unit. The following section provides details of the five methods have traditionally been used to departmentalize employee and jobs, also advantage and disadvantage each of the methods. This is common and popular basis of departmentalization of an enterprise. For another example of Functional departmentalization at Victoria University is Academic Support and Development because this department can students with University assessment tasks such as writing skills, reference skills, online language translator and providing expert support the student academic success and retention across the university. Although the hospital study suggested that matrix management was better suited to larger organizations, General Motors Corp. Hence, the manager in charge of sales splits advertising and sales promoting activities, and for each, places a subordinate in charge.
Managers must carefully consider whether or not a modular structure would be useful, either entirely or partially, for a given organization. Teams are created by grouping employees in a way that generates a variety of expertise and addresses a specific operational component of an organization. The most common way of process departmentalization is the division of the firm into business functions, such as purchasing, manufacturing, sales, accounting, etc. By departmentalizing its company with the financial function on one axis and the geographic areas on the other, it might benefit from having each of its geographic units intertwined with its finance department. The company can hire local employees to serve different customers from different geographical locations. Example: government, education, health, wholesale or retail. Depending on the type of task and the company's preference, the functional manager may focus on international issues e.
Many argue that this form of departmentalization achieves a more balanced form of organization structure and expedites complex and specialized. Supervision is dual, encompassing technical and administrative managers, and incorporates several reporting systems and interweaves communication lines for transmitting decisions. In contrast to most other organizational structures, which arrange managers and employees by function or product, matrix management combines functional and product departments in a dual authority system. Within each division, moreover, activities would be departmentalized into subdepartments. The disadvantage is inflexibility of work because the stuff only is qualifies for one specialisation.
Disadvantages of a Modular Structure On the other hand, more internalization and more tightly coupled structures can produce better communication and intellectual property gains. In this form, one parent company owns subsidiary companies, each of which uses its brand and name. Empowered workers develop feelings of competence and self-determination and believe that their work has meaning and impact. Advantages of Matrix Structures Because matrix structures retain an organization's functional structure, they allow for the rapid creation of efficient large-scale, project structures that employ many members of the organization's functional structure but without disrupting or destroying the structure in the process. Customer departmentalization focuses its divisions on the different kinds of customers a company has.
That said, team-building is now a frequent practice of many organizations and can include activities such as bonding exercises and even overnight retreats to foster team cohesion. This example illustrates how inherently complex matrix structures are in comparison to other, more linear structures. This is made to maintain working efficiency of each process and to economize productivity. On the other hand, the problem of aligning individual and organizational goals remains. Blurred authority in a matrix structure can result in reduced agility in decision making and conflict resolution. Related: Types of Departmentalization Departmentalization results from the division of work and the desire to obtain organization units of manageable size and to utilize managerial ability.
Miscommunication Departmental isolation can give rise to problems in communication. The multidivisional form is defined as decentralized management structure; organized into products divisions, each division containing a unitary structure; and a central office to make to strategic decisions. The advantage of functional departmentalization is efficiency of work and is to be done by specialist skills and high qualified. The chief advantage of functionally structured organizations is that they usually achieve a fairly efficient specialization of labor and are relatively easy for employees to comprehend. Various degrees of modularity are possible but not necessarily useful if the pros do not outweigh the cons. For example, the regional headquarter for Asia is in Singapore, and the regional headquarter for Europe is in London.
Ins and Outs of Matrix Structures The matrix organizational structure provided solutions to these large scale project problems by allowing for impermanent project structures that co-existed with relatively permanent functional structures. Indeed, mechanistic organizations often stifled human creativity and motivation and were generally insensitive to external influences, such as shifting markets or consumer needs. Even when organized to focus on customer acquisition and satisfaction, a company needs to ensure teams are aware of and working toward overall corporate strategy. Inspired by the work of thinkers and behaviorists such as Harvard researcher Elton Mayo, who conducted the famed Hawthorne Experiments, theories about management structure began to incorporate a more humanistic view. For a manager or supervisor, the number of layers in an organization will particularly affect the manager's level of authority and responsibility. More adept management is the result of top decision makers becoming more involved in, and thus better informed about, the day-to-day operations of the company.
Since it is produced for use by others, it must be distributed or marketed; that is, people must be found who want the product or service and are willing to accept it at terms mutually agreeable to the seller enterprise and the buyer. . The cardinal advantage of a matrix structure is that it facilitates rapid response to change in two or more environments. What is a Matrix Structure? The language barrier hinders cooperative efforts. Matrix management structures combine functional and product departmentalization.