The following sample essay on Organizational Structure Issues discusses it in detail, offering basic facts and pros and cons associated with it. To read the essay’s introduction, body and conclusion, scroll down.
This document presents responses to the discussion questions posed in chapter 8 (O. C, Geoffrey & Linda, 2009). The chapter discusses about organization structure, teamwork, and communication. Organization structure is the form of an organization that is evident in the way divisions, departments, functions, and people link together and interact. Organization structure reveals vertical operational responsibilities, and horizontal linkages, and may be represented by an organization chart. The complexity of an organization’s structure is often proportional to its size and its geographic dispersal. Business Situation Regarding Spectrum Brand
The sections below pretend reference to the above business situation. How To Organize Spectrum Brands Using A Matrix Structure The matrix structure groups employees by both function and product. This structure is based on multiple employee reporting structures. It emphasizes both vertical organizational hierarchy and horizontal relationships. In other words, any employee within a matrix organization reports upwards to functional managers and, based on geographic requirements, may also report sideways to project managers. In this arrangement, employees are responsible to two managers- functional and project managers (O.
C, Geoffrey & Linda, 2009). Employees can be in one department and report to functional manager, but these same employees may be assigned to different projects and report to a project manager while working on that project. Therefore, each employee may have to work under several managers to get their job done. How To Organize Spectrum Brands Using Multidivisional Structure The multidivisional structure of Spectrum Brands can be broken down into three areas: product, market, and geographic. These are summarized as follows: Product structure: Each product division contains the functions necessary to that specific good.
Which Of The Following Is Not A Basis For Organizing Using A Multidivisional Structure?
Product structure groups’ employee together based upon specific products produced by the company. Spectrum Brands, for example, can operate with its products such as pet food, pet supplies, grooming product, toys, novelty items, vitamins and veterinary supplies. The company can have a separate division for each product. Market structure: Market structure groups employees together based upon specific market in which the company sells. The company can sell its products to individual consumers and business consumer. So the sales and consumer customer service worked together, and corporate sales and corporate customer service worked together.
Geographic structure: This structure groups each organizational function into divisions based on geographical basis. Each division within a divisional structure can contain all the necessary resources and functions within it. Divisions can be categorized from different points of view. Especially if the company is facing problem of controlling its activities on a national or international level is likely to use a geographic structure and group functions into regional divisions to service customers in different locations. Each geographic division can access to a full set of the functions it needs to provide its products.
The Most Effective Structure For Spectrum Brands A multidivisional structure can allow Spectrum Brands to coordinate intergroup relationships more effectively than does a matrix structure. Since the company supplies pet products in 48 states and has more than 750 stores, departments can be formed on the basis of geography, customer, product, or a combination of these. This structure can also allow regional managers and employees to be close to their customers and, may develop more relationships that may give managers and employees extra incentive to perform well.
Employees’ close identification with their division can increase their commitment, loyalty, and job satisfaction. Potential Communication Problems In Matrix And Multidivisional Structure Information sharing is important in companies like Spectrum Brands because several people may be required for the same piece of work. Because a matrix organization chart is working with more complex communication structure and hierarchy, it needs to be structured properly. One that isn’t properly thought out and executed can be dysfunctional in that it creates confusion rather that clarity.
Confusing communication is always a detriment to the organization or a team. Matrix structure increase role conflict and role ambiguity. Reporting relationship in this structure makes employee vulnerable to role ambiguity. Two bosses making conflicting demands on two-boss employee relationships. This conflict and ambiguity can increase feelings of stress. Employees have difficulty in demonstrating their personal contributions to team performance because they move so often from one team to another.
And there are limited opportunities for promotion, because most movement is lateral, from team to team, not vertical to upper management positions. Divisional structures normally have more managers and more levels of management than matrix structures have, communications problems can arise as various levels in various divisions attempt to coordinate their activities. As the companies grow and diversify, traditional line structures become difficult to coordinate, making communication difficult and decision making slow (O. C, Geoffrey & Linda, 2009).
Divisions may start to complete for organizational resources and may start to pursue divisional goals and objectives at the expense of organizational ones. Most Effective Level Of Centralization In Matrix And Multidivisional Structure Multidivisional structures permit delegation of decision-making authority, allowing divisional and department managers to specialize. They allow those closest to the action to make the decisions that will affect them. Delegation of authority and divisionalized work also mean that better decision faster, and they tend to be more innovative (O. C, Geoffrey & Linda, 2009).
A multidivisional structure makes it relatively easy for organizations to evaluate and reward the performance of individual divisions and their managers and to assign rewards in a way that is closely linked to their performance. Corporate managers can also evaluate one regional operation against another and thus shared ideas between regions and find ways to improve performance. Matrix structures provide flexibility, enhanced cooperation, and creativity, and they enable the company to respond quickly to changes in the environment by giving special attention to specific projects or problems.
However, they are generally expensive and quite complex, and employees may be confused as to whose authority has priority (the project manager’s or the functional manager’s) Conclusions The information presented above leads to the following conclusions: 1. The matrix structure groups employees by both function and product. This structure is based on multiple employee reporting structures. It emphasizes both vertical organizational hierarchy and horizontal relationships. 2. In multidivisional structure, divisions (departments) can be formed on the basis of product, market, and geographic structure. 3.
In multidivisional structures communications problems can arise as various levels in various divisions attempt to coordinate their activities. Matrix Structure increase role conflict and role ambiguity on two-boss employee relationships. 4. Multidivisional structures permit delegation of decision-making authority, allowing divisional and department managers to specialize. In matrix employees may be confused as to whose authority has priority (the project manager’s or the functional manager’s).
Reference Ferrell, O. C. , Hirt, G. , & Ferrell, L. (2009). Business: A changing world: 2009 custom edition (7th ed. ). New York: McGraw-Hill/ Irwin.