... FARHAN AHSAN MBA-1ST SEMESTER | [INDIVIDUAL REPORT PROJECT] | MATRIX ORGANIZATIONAL STRUCTURE | Quaid-I-Azam School of Management Sciences ISLAMABAD Submitted to: Sir Sarfaraz Hussain Ansari Subject: Principle of Management Introduction: A matrix organization structure can simply be defined as an organization, which has multi reporting lines in which employees have more than one formal boss. In other word a matrix structure is a grid like organizational structure that allows a company to address multiple business dimensions by the help of multiple command structure. If we closely examine this, we can easily find it, as a hybrid of functional and divisional structure. Multinational companies usually practice matrix structure or matrix management system to blend and bring functional and divisional structure under the same umbrella of an organization in order to gain more benefits out of it. But at the same time, it is not so much easy as it looks, but, rather it is very much difficult and challenging job for the top management to carry on operations in a matrix system. We will later in detail discuss the challenges, pros and cons of matrix organizational structure and how to deal with them. The concept of matrix organizational structure evolved in 1960s to meet the needs of the aerospace industry. NASA was the first organization who adopted matrix organization structure for its multiple projects. Government contract selection process required a project-oriented...
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...Project Management, 2e (Pinto) Chapter 2 The Organizational Context: Strategy, Structure, and Culture 2.1 True/False 1) The same project managed in the same fashion may succeed in one organization but fail in another. Answer: TRUE Diff: 2 Section: 2.0 Introduction Skill: Factual AACSB Tag: Reflective 2) Most companies are well suited to allow for successful completion of projects in conjunction with other on-going corporate activities. Answer: FALSE Diff: 1 Section: 2.0 Introduction Skill: Factual AACSB Tag: Reflective 3) Developing vision and mission statements is an important tactical step in project management. Answer: FALSE Diff: 2 Section: 2.1 Projects and Organizational Strategy Skill: Definition AACSB Tag: Reflective 4) One element of strategic management is cross-functional decision-making. Answer: FALSE Diff: 1 Section: 2.1 Projects and Organizational Strategy Skill: Definition AACSB Tag: Reflective 5) Strategy, goals, and programs support the organizational mission. Answer: TRUE Diff: 1 Section: 2.1 Projects and Organizational Strategy Skill: Definition AACSB Tag: Reflective 6) Stakeholder analysis looks at a project's customers and determines whether their needs are being met. Answer: FALSE Diff: 2 Section: 2.2 Stakeholder Management Skill: Definition AACSB Tag: Reflective 7) Suppliers and competitors are possible intervenor groups in a project. Answer: TRUE Diff: 1 Section: 2.2...
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...Concepts of Organizational Design Shelley Witt MMPBL/550 May 9, 2011 William Gillis Key Concepts of Organizational Design Organizational design is an important part of organizational theory. Organizational design changes with a company as its growth and goals are determined. Some important aspects that control organizational design are structure, strategy, and processes. Each individual organization needs to determine its own design based on its needs and mission. Every plan has its own advantages and disadvantages which are weighed carefully in making the corporate design decision. Importance of Organizational Design Choices In order for an organization to remain effective throughout changes and growth it must continuously evaluate the organizations design. “Organizational design involves difficult choices about how to control—that is, coordinate organizational tasks and motivate the people who perform them—to maximize an organization’s ability to create value” (Jones,2004, p. 4). Organizational design involves the process of aligning the organizational structure with its mission. Organizational design looks at the complex relationships between workflow, tasks, authority, and responsibility. Organizational design makes sure they all support the organizations objectives. Companies with good organizational design tend to have effective communication, increased productivity, and substantial innovation. Companies with poor organizational design...
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...Organizational structure Steven Puryear MKT/437 03/21/2012 Eric Wilson Organizational structure In project management there are three primary project management organizational structures, functional, matrix, and pure project. In this paper the reader will learn what each of them are and how they compare. The reader will also learn which organizational structure will be the best fit for certain situations. The first structure I will discuss is the functional structure it is when each job becomes the focus point, similar jobs done by employees are put in silos, and specialized jobs are combined and done by centralized employees. The main focus attempts to allocate all available employees according to their roles and abilities, this is referred to as functional department. The benefits of this structure are that the order of command is sound and falls directly inline. It also gives employees an opportunity to grow with the company and working professionals away to perform as a single unit. The draw backs are that the decision process can be very time consuming, the flow of communication between departments is complicated and when you group the people by functions it limits the amount of different views that can be come up with. This structure is best used when companies have an individual product or group of similar products that can be merged under a single heading. The next structure is matrix; this structure is when workers are put in compartments based on skills that...
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...Organizational Structure Organizational Structure The company that I work for is a construction company, just as with most construction companies, the organizational structure of the company is a matrix organizational structure. The way that the hierarchical levels are in this company is; the owner/CEO occupies the highest position. The next position down the vertical structure is a shared level of management, which is occupied by a project manager, and a super intendant. Each project has their own project manager and super intendant that report to the owner/CEO. The company that I work for is a decentralized organization, where “decision making occurs at the level of the people who are most directly affected and have the most intimate knowledge about the problem” (Bateman & Snell, 2011). The reason that this is the most effective for this company is, because of the need in the construction industry for decisions made in a timely manner, in order for the project at hand to effectively and efficiently get done. In some instances it would not be conducive to go through the process of the decision going up the vertical structure. The company that I work for employs two different trades- sheet metal workers, and carpenters- this is the reason that if the company were organized with the functional structure or divisional structure, it would be less efficient. In the matrix structure, there is only one project manager, and one super intendant for each project. All of the...
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...organized 2. A single organizational structure is best for all organizations regardless of strategy. 3. An organization’s structure reveals the formal groupings and specializations of activities. 4. The Project Organization is based upon organizing resources to perform specialized tasks or activities in order to attain the goals of the organization. 5. The Functional Organization is based upon organizing resources to perform specialized tasks or activities in order to attain the goals of the organization. 6. Breadth, depth of knowledge and experience are advantages for projects sponsored by organizations with functional structures. 7. The Project Organizational structure supports clear authority and responsibility, improved communication and high levels of integration. 8. Disadvantages of the Project Organizational structure include project isolation, duplication of effort and projectitis. 9. Projectitis sometimes occurs when the project manager and project team develop a strong attachment to the project and to each other. 10. Unity of Command is violated when a project team member has only one direct superior. 11. The main feature of the Matrix Organizational structure is the ability to integrate areas and resources throughout an organization. 12. High potential for conflict and poor response time are disadvantages of the Matrix Organizational structure. 13. The informal organizational structure is a published structure that defines the official...
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...Wal-Mart’s Organizational Structure Damaris Medina MGT/230 September 13, 2012 Dan Kassmeier Every company has their own form of organizational structure. Whether the business is big or small, an organizational structure is needed in order to have a successful business. An organizational structure helps put the business in order to make sure there are no problems in the future, but what is an organizational structure? It is how the reporting structure is organized. There are many types of organizational structures. Some examples of organizational structures are, the functional, matrix, and divisional structures (Bateman & Snell, , 2011). When business owners are planning a structure for their business, it is important to know just how complex the business will be. If the business is a major corporation, such as Wal-Mart, then the structure should be able to support the complexity of the business. When a major corporation does not have a structure that supports their complexity, they are likely to have issues with the organization of the business. Thus causing for the business to lack the proper management and potentially fail. An organizational structure will determine how all employees work together. If the business is not under a strong structure, then there will be confusion throughout the whole business. An organizational structure also determines the decisions that the business will make as a whole (, , 1991).If there is no structure, there is no business. There...
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...led Samsung to reorganize in 2009? A) failed joint ventures B) foreign trade restrictions C) global economic conditions D) emerging market competition 2. Structure must fit an organization's ________, or it will not work. A) environment B) traditions C) culture D) strategy 3. Firms typically internationalize in response to all of the following EXCEPT ________. A) need for diversification B) affects of governmentalism C) increased global competition D) domestic market saturation 4. Which of the following is NOT a stage in Stopford's stages model? A) global product structure B) matrix structure C) international division D) regional structure 5. Sedona Industries is a U.S. firm that manufactures high-quality handbags, luggage, and belts from its facility in Arizona. Sedona's products have been featured in various fashion magazines, and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should reorganize into a domestic structure plus foreign subsidiary? A) Sedona executives want to open numerous subsidiaries in both Europe and Asia. B) Sedona is a family-owned business which began as an entrepreneurial...
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...Organizational Structure Analysis Adam Alderson, Angeles Roman, Kristopher Hilton, Chad Hulsey MGT 230 June 16, 2014 Eve Morse Organizational Structure Analysis There are three different organizational structures that a business can use. There is Functional Structure, which has each portion of the organization grouped according to purpose. There is Divisional Structure, which divides the organization by geographic area or types of product or market. There is also Matrix Structure, which uses both functional and product departments but also has workers from these departments reporting to a project manager. Each of these structure types has their advantages and drawbacks and we will discuss those. First, we will look at the Functional Structure. The Functional Structure has a single manager to oversee the work being done. This type also allows for many workers in the same field to collaborate and become very cohesive as a team where advancement is there for everyone. The downside to a Functional Structure is two fold. One problem is that different departments can argue over what falls under their umbrella of responsibilities. Another problem is that larger companies will have larger employee groups, which makes managing them become more difficult. Second, we examine the Divisional Structure. The Divisional Structure groups basic tasks into jobs and then groups those jobs into departments. This creates departments based on the final outcome of each job group. An advantage...
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...the case. It is obvious that everyone involved could have handled things differently in order to maximize time and resources while maintaining a healthy and product work environment for all involved. From the beginning it was evident that Olds skills were definitely in demand. It’s not question that due to his background, Olds talent was quite possibly the best that the Moss and McAdams Accounting Firm had. Because his expertise was so in demand, when met with an organizational structure that had an obvious weak matrix structure, it caused hardship. A weak matrix closely resembles the functional approach, which among other things gives functional managers responsibility over the project manager (Gray & Larson, 2009). In this case Ruby Sands had the role of functional manager and therefore ultimately made a decision that affected Palmer’s account. From the onset of the situation, Palmer should have voiced his concerns regarding spreading his project members to think across other accounts. Due to the weak matrix environment, it may not have mattered. As soon as Palmer recognized the problems he should have addressed the issue. At the end of the case, Palmer should accept that the decision made by management was the best decision for all parties involved. Valuable employees leave projects all the time for one reason or another. The only reasonable thing to do is find a suitable replacement and continue on with the project. Palmer should address his concerns regarding the...
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...Organizational Design and Change Recommendation Melvyn Lopez University of Phoenix GMGT/591: Seminar in Global Management James B. Jordan August 17, 2006 Organizational Design and Change Recommendation The formal structure of a company, a component of the company's internal environment, determines how its activities are conducted. The formal structure also determines how authority and communications flow from management to employees. An integral part of the expansion of Riordan Manufacturing to Germany involves the selection of an organizational structure that allows the firm to operate effectively in the new environment. Variations in structure are determined by the tasks a company performs, how management wishes to perform them, and external factors. External determinants include customer demands, competitors' strategies, and government regulations. Implementation of the structural change in Riordan Manufacturing can be assisted by change in the structure of the organization as reflected in its organizational chart. The company’s managers can greatly facilitate the implementation of new strategies by changing reporting relationships, creating new departments or business units, and providing the opportunity for autonomous decision making. Because no single organizational design suits all circumstances, managers at Riordan Manufacturing must carefully consider their company's situation, strategy, environment, age, size, and technology, in Germany before...
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...Melissa Whitehead Organizational Structure and Controls Webster University 4-28-15 Organizational Structure and Controls Organizational structure refers to relationships of different employees with different role responsibilities in an organization or company facilitating interactions from both horizontal and vertical flows of information. An organization has different structural dimensions like formalization, hierarchy of authority, specialization, personnel ratios and professionalism. Any organization should boost improvement and participation and should be planning to go beyond its performance levels. Organizations would also excell on having contextual magnitudes such as technology uses, size and operating environment from where it operates. There are also different types of organizational structures that group employees together based on their skills and knowledge, basically a corporation has necessary jobs that are related and organizations finds who works well with whom and who will make the decisions. These structures are horizontal, functional, divisional, hybrid and matrix (www.smallbusiness.com/functional). The horizontal structure has a less- distinct chain of command. All employees in this segment can have input on how they organization is run. Employees in the horizon structure don’t have a single defined duty because they work together in teams where everyone has many different functions within the organization. There employees may not have on boss, but...
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...Matrix Organizations: Design for Collaboration and Agility Nick Horney, Ph.D. & Tom O’Shea, CMC, Principals, Agility Consulting 9/1/2009 M A T R I X O R G A N I Z A T I O N S Matrix Organizations Success in a matrix happens when you focus on building a new organization rather than simply installing a new structure. “S I C O N K E Y ince the end of World War II, corporate strategy has survived several generations of painful transformations and has grown appropriately agile and athletic. Unfortunately, organizational development has not kept pace, and managerial attitudes lag even farther behind. As a result, corporations now commonly design strategies that seem impossible to implement, for the simple reason that no one can effectively implement third-generation strategies through secondgeneration organizations run by first-generation managers. Today, the most successful companies are those where top executives recognize the need to manage the new environmental and competitive demands by focusing less on the quest for an ideal structure and more on developing the abilities, behavior, and performance of individual managers.” This assessment of matrix management, published in the Harvard Business Review in 1990, is a stinging portrayal of the state of matrix organizations at the time the article was written. Fortunately, both the times and the ability of organizations to adapt have changed. Organizations have become much more adept in implementing complex...
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...2010 Given the business situation for Spectrum Brand p. 251, explain how the firm might organize using a Matrix structure for the organization. Matrix structure is a structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called a project-management structure. Matrix structures are created in response to uncertainty and dynamism of the environment and the need to give particular attention to specific Spectrum Brand products such as: the batteries, pet products, personal grooming, and lawn and garden care. Instead of completely switching from a product based structure, a company may use a matrix structure to balance the benefits of product based and traditional functional structures. By using the matrix structure as opposed to product departments may increase communication and cooperation among departments, because project managers will need to coordinate their actions with department managers. Matrix structures have the benefit of providing quick responses to technical problems and customer demands. A project manager keeps the focus on the products that’s being provided. Matrix structures are usually temporary. Once a project is complete team members go back to their functional or line department. Explain how the firm could operate using a Multidivisional structure. A multidivisional structure organizes departments into larger groups called divisions. Spectrum brand can break their products down...
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... It is important to be aware of your company's organizational structure because it reveals information regarding who has authority over whom; how and why a company divides the workload by specific people and by groups/teams. Understanding your organizational structure can also reveal important cross-functional relationships to coordinate work efforts for optimum results. It can show where breakdowns can occur in the hierarchy and assist in developing solutions for increased accountability. In this paper, we will discuss and describe the organizational structure of Google and compare their organizational structure to the organizational structure of two other fortune 500 companies, Boeing and Microsoft. We will evaluate how organizational functions (such as marketing, finance, human resources, and operations) influence and determine the organizational structure of your selected organization. Finally, we will explain how organizational design (such as geographic, functional, customer-based, product, service, hybrid, matrix, marketing channels, and departmentalization) determines why each organizational structure works for that company’s needs. Organizational Structure Organizations are designed and structured in such a way to best meet their needs and goals. How an organization is setup can directly impact how successful the organization is in achieving those goals. Without an appropriate organizational structure, a business will not succeed. Organizations large...
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