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Proposed definitions will be considered for inclusion in the Economictimes.com Definition: A matrix organisation is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss! Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. reaching higher productivity. It has various benefits. This type of structure is used in organisations which have diverse product lines and services. It breaks the monotony and gives more flexibility to the organisation. Employees work with colleagues of different departments who have their expertise in different functions. When different people from diverse departments work together, it helps solve problems in a more efficient way. It does lead to overall development of employees as each one is exposed to different functions apart from their core job. Here employees are assigned a job or a project outside their own department for a relatively temporary period. These teams are made up of people with diverse expertise who have come together and formed a team to attain a specific goal. However, there are some challenges as well. In matrix organisation structure, ambiguity could come in, if you (employees) are not sure which manager to report to. This also means that employees might be confused about their role and responsibility. Apart from that, in the matrix organizational structure it becomes relatively difficult for the organisation to gauge the employee’s performance on a particular project. The matrix structure turns out to be a bit more expensive to the organisation than the traditional one, because it employs more managers.
A divisional organizational structure gives a larger business enterprise the ability to segregate large sections of the company's business into semi-autonomous groups. While generally better suited to larger organizations, in some circumstances this formal structure may also benefit a smaller business. In all cases, groups are mostly self-managed and focused upon a narrow aspect of the company's products or services. As with any organization structure, divisional structures have both strengths and weaknesses. What Is Divisional Organizational Structure?A divisional organizational structure usually consists of several parallel teams focusing on a single product or service line. Examples of a product line are the various car brands under General Motors or Microsoft's software platforms. One example of a service line is Bank of America's retail, commercial, investing and asset management arms. Unlike departments, divisions are more autonomous, each with its own top executive – often a vice president – and typically manage their own hiring, budgeting and advertising. Though small businesses rarely use a divisional structure, it can work for such firms as advertising agencies which have dedicated staff and budgets that focus on major clients or industries. Advantages of Divisional Organizational StructureDivisions work well because they allow a team to focus upon a single product or service, with a leadership structure that supports its major strategic objectives. Having its own president or vice president makes it more likely the division will receive the resources it needs from the company. Also, a division's focus allows it to build a common culture and esprit de corps that contributes both to higher morale and a better knowledge of the division's portfolio. This is far preferable to having its product or service dispersed among multiple departments through the organization. Disadvantages of Divisional Organizational StructureA divisional structure also has weaknesses. A company comprised of competing divisions may allow office politics instead of sound strategic thinking to affect its view on such matters as allocation of company resources. Thus, one division will sometimes act to undermine another. Also, divisions can bring compartmentalization that can lead to incompatibilities. For example, Microsoft's business-software division developed the Social Connector in Microsoft Office Outlook 2010. They were unable to integrate Microsoft SharePoint and Windows Live until months after Social Connector could interface with LinkedIn. Some experts suggested that Microsoft's divisional structure contributed to a situation where its own products were incompatible across internal business units. Organizational Structure AlternativesLarge organizations that want the focus of a division could instead spin off into a free-standing subsidiary. Smaller organizations can work through major projects via dedicated departments or ad-hoc cross-functional work teams. Another promising organizational structure is the Matrix Structure, which combines a Functional Structure (often a traditional hierarchical organizational structure) and a Project Structure, where the organization is structured around the implementation of its various projects. Making It WorkTo be successful, divisions must be well managed. Executive leadership is the single most important determinant of success for a company using a divisional structure. The top leaders need to understand what each division is doing and provide leadership to the division chiefs on how to accommodate new strategic directions or more effectively partner across divisions. In addition, the executives should have a solid grasp of resource use. Having a shared pool of centrally-managed resources like administrative support or office equipment can reduce costs and organizational complexity. In which of the following circumstances will a divisional structure be more appropriate for an organization quizlet?Divisional structures are most appropriate in stable and predictable environments. Functional structures help support organizations that compete on differentiation or innovation, because flexible responsiveness is central to making this strategy work.
Which of the following questions should be addressed right after the inputs required for production have been established group of answer choices?Once the inputs required for the production have been established, the next step is to focus on the process. The question to be addressed is "What tasks are required in the production of the output?" Which stage in a work-unit activity analysis focuses on the product produced or service provided?
Which approach to job design focuses on mental capacities and limitation to reduce issues in the workplace?Workplace ergonomics is the science of designing the workplace, keeping in mind the capabilities and limitations of the worker.
How does the mechanistic approach differ from the motivation approach quizlet?The mechanistic approach seeks to empower individual workers. B. The motivational approach designs jobs that are repetitive and mundane.
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In which of the following circumstances will a divisional structure be more appropriate for an organization group of answer choices?
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