Matrix structure

Examples of Matrix structure in the following topics:

• Matrix Structure

  • The matrix structure organizes employees by function and output to capitalize on strengths and improve efficiency.
  • The matrix structure groups employees by both function and product .
  • This structure can combine the best of both separate structures.
  • As a simple lattice emulating order and regularity demonstrated in nature, the matrix structure is among the purest of organizational structures.
  • Representing matrix organizations visually has challenged managers ever since the matrix management structure was invented.

• Organizing Tasks

  • A company might decide that a functional structure is best for them.
  • In such a structure, the engineering department would be staffed only with software engineers.
  • If a company decides that a matrix structure is best for it.
  • Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department.
  • A good organization structure is essential for expanding business activity.

• Organizational structure and human resources management

  • Disadvantages: The disadvantages of the area structure are similar to those of the product structure.
  • A matrix structure is often adopted in organizations that would like to optimize decisions across multiple organization dimensions.
  • A matrix organization simultaneously utilizes two or more dimensions (product, geographic, function, etc. ) to organize the company's work.
  • Advantages: The matrix allows functional efficiencies to be achieved while also allowing for the management of discrete product lines.
  • Disadvantages: The matrix is complex and often involves additional coordination costs.

• Centralized versus decentralized organizations

  • So how does an owner begin to digest and pick between all the choices (function, product, process, project or matrix structure, flat versus tall, centralized versus decentralized) available when it comes to organizing a business?

• The Organization Chart

  • An organization chart outlines the structure of an organization and the relative relationships between various functions and positions.
  • The President of the United States and the reporting structure beneath him as Commander-in-Chief is a good example of the use of an organization chart.
  • An organization chart is a diagram that outlines the reporting structure of an organization and the relative relationships between the various organizational functions and their underlying jobs/positions.
  • Organization diagrams can depict hierarchical, matrixed, or flat/horizontal structures.

• Business to business marketing models

  • Three of best known models are the Boston Consulting Group (BCG) Matrix, the McKinsey Matrix, and Larry Downe three forces.Each of these models is described below.
  • The McKinsey matrix is a later and more advanced form of the BCG Matrix.
  • It has several differences with BCG's matrix, as discussed below.
  • Finally the McKinsey matrix works with a 3x3 grid, while the BCG Matrix has only 2x2.
  • Those who use the Five Forces Model and who base their thinking on today's industry structure would never see these changes coming in time.

• Principles of Organization Design

  • Organization design can be defined as the process of shaping an organization's structure, roles, and responsibilities.
  • an outline of the key structural dimensions of the organization (e.g., a hierarchical structure with formal peer-to-peer relationships)
  • a determination of the personnel subsystems (i.e., committees, departments, teams, programs) and task groupings (i.e., functional, divisional, matrix, or networked).
  • This step in the process entails deciding the operational structure of an organization.

• Organizational stages of growth

  • As an organization grows, it generally progresses through four stages of increasingly formal management structures.
  • Business scholars have categorized various organizational structures as described below.
  • However, do not assume that a growing business must at one point or another assume one of these structures.
  • To departmentalize on a product basis means to establish each major product in a product line as an independent unit within the overall structure of the company.
  • Some firms are organized by using a mix of departmentation types (matrix organization).

• New Product Ideas

  • Opportunity identification: Large or incremental business and technological chances are identified in a relatively structured way.
  • Using the guidelines established here, resources are allocated to new projects, leading to a structured New Product & Process Development or NPPD strategy.

• Chapter Summary

  • BCG's Matrix and Mckinsey's Matrix help diagnose the dimensions in a product's life cycle.
  • Types of analysis that might be performed are simple frequency distributions, crosstab analysis, multiple regression (driver analysis), cluster analysis, factor analysis, perceptual mapping (multidimensional scaling), structural equation modeling and data mining.