Business Matrix

The Business Enterprise – BUS 508

Given the business situation for Spectrum Brand p. 251, explain how the firm might organize using a Matrix structure for the organization. A matrix structure, often called a project management structure, sets up teams from different departments by creating two or more intersecting lines of authority. Employees are responsible to two managers. Matrix structures are usually temporary; team members go back to their functional or line departments after a project is finished. An advantage of the matrix structure is that this form of organization provides flexibility, enhances cooperation and creativity, and enables organizations to respond quickly to changes. But the matrix structure is generally expensive and quite complex. Employees may be confused about who has authority—the project manager or the immediate supervisor.

Explain how the firm could operate using a Multidivisional structure. A multidivisional structure gathers departments into larger groups called divisions. Divisions can be formed based on geography, customer, product, or on a combination of these factors. Multidivisional structures permit delegation of decision-making authority, and allow the specialization of divisional and department managers. By focusing divisions on a common region, product, or customer, each is more likely to provide products that meet the needs of its particular customers. A drawback of the multidivisional structure is that it creates work duplication, which makes it more difficult to realize the economies of scale that result from grouping functions together.

Discuss which structure would be more effective? Explain. Matrix organization structures were introduced to cope with the complex projects required in the aerospace industry. Many thousands of organizations, often prompted by the large strategy consultancies, have adopted the matrix structure to help deal with internal and external complexity.

At its simplest the matrix just...