What is a matrix organizational structure?
The organizational structure is a detailed outline of the company's management and structure. The matrix organizational structure is a hybrid model that combines aspects of both functional and division structures. The functional structure separates the company with various functions such as production, human resources and sales. Division structures are divided by projects such as products, customers or region. By integrating both options into the organizational structure of the matrix, the company gains more advantages.
Functional organization is trying to use the work theory. The theory states that the department of workers into groups on the basis of experience increases the effectiveness of the organization. For example, including sales, marketing and promotion departments, and employees can increase the efficiency and production of workers, as employees usually have experience in all three tasks. The organizational structure of the matrix uses this division as one part of its base for the company's astrs.
Division organization is the second aspect of the organizational structureUry matrix. There are two possibilities of separation for divisional organizational structure. First, society may be organized in profitable or cost centers; The former monitors revenue and costs and these costs only. Second, divisional organizations can separate operations according to the project. Projects can be a specific business segment, regional location for sale and distribution or customer type, such as industrial or wholesale.
Another type of organizational structure of the matrix is the division of the company along the product lines. There are a number of features under each range of product lines. This allows companies to set up specific driving groups or teams to control each product line. Through this division, the company can experience higher product quality, because some managers and employees can focus on one product line. This falls under the division of the theory of work that allows specaLication of work to ensure operational quality.
The organizational structure of the matrix is not without its shortcomings. The main defect is the inability to keep the whole society focused on umbrella goals. For example, many companies have one organizational mission. Having numerous separate functions and divisions weakens the ability to move all departments in one direction. To maintain a business, the highest level can move in the same direction.
Another defect is the lack of flexibility in the organization. The organizational structure of the matrix focuses on division and work specialization. When the company removes the product line from its business, employees working on the project are subject to removal or changes to employment. This can solidify the company and make it difficult to change with the changing business environment.