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Matrix structure
Network structure
Members of the organization are grouped according to the particular function that they perform within the organization.
Appropriate when an organizations greatest
source of complexity comes from the diverse tasks that must be performed rather than from its products, geographic markets, or consumer groups.
Functional Structure
Functional Structure
Advantages
Facilitates
Disadvantages
Focus on
departmental versus organizational issues Difficult to develop generalists needed for top-level management Only top-level management held accountable for profitability
Product Divisions
For organizations with relatively diverse product
Geographic Divisions
For organizations with limited product lines that
either have wide geographic coverage or desire to grow through geographic expansion.
Customer Divisions
For organizations that have separate customer
Advantages
Enhanced coordination.
Better assessment of manager performance and
responsibility.
Development of generalist managers.
Disadvantages
Managers may lack expertise to operate in wide
geographic areas.
Duplication of resources.
Mastermind
Gujarat
Hydrabad
Surat
Rajkot
Ahmedabad
Geographic Divisional
Advantages
Allows for focus on specific new markets.
Good structure for growth along geographic
lines.
Adaptable to local needs.
Disadvantages
Duplication of product or product/technology
efforts.
Coordination and integration are difficult.
May be difficult to manage diverse product lines.
A structure in which the tasks of the organization are grouped along two organizational dimensions simultaneously.
Examples include:
Product/function Product/geographic region
Matrix Structure
Disadvantages
Complex, leading to difficulties in
implementation
Behavioral difficulties from two bosses Time consuming from a planning/coordination
perspective
Advantages
Can achieve real-time objectives
An organization that has a core coordinating with other organizations or organizational units.
Advantages
Maximizes the effectiveness of the core unit
Do more with less resources Flexibility
Disadvantages
Fragmentation makes it difficult to develop
control systems
Success is dependent on ability to locate
sources
Difficult to develop employee loyalty