Matrix Organization Structure: Advantages and Disadvantages
By Nodir M Ataev
Contents
Contents
Organizational Structure
Types of Organizational Structures
Line Organizations
Line-and-Stuff organizations
Committee Organizations
Matrix Organization: An Outline
Matrix Organization: Advantages
Matrix Organization: Disadvantages
Matrix Organization: Conclusion
References
Bibliography
Organizational Structure
An organization is the result of the organizing process and can be defined as a structured grouping of people working together to achieve organizational objectives. 1 Every organization must choose an overall structure that meets its needs best and allows interactions among individuals and departments to attain the its goals.
For a small business, the organizing process is comparatively simple. The owner of a grocery store employs a few people to sell groceries and to take care of the supplies and personally directs business operations. The handling of such a relatively small store is more or less simple and easy.
However, as a company grows the need for organization increases. As a company enlarges its scope of business, it has to hire more employees. Instead of a single bookkeeper, it will have to employ an entire accounting department, rather than one seller the owner will need a number of them. The large number of employees makes it impossible for a single person to control the business. One or other formal type of organization becomes necessary.
To effectively accomplish their goals large organizations use various techniques such as departmentalization, delegation, and others. Departmentalization is the dividing of work activities into units within the organization. This method can be used to effectively run a large organization and has been used in different organizations throughout the world. h1> Types of Organizational Structures
An organizational structure is a hierarchical concept of subordination of entities that work together and contribute to serve one common aim 2 . The structure of an organization is usually built in one of a variety of styles, dependent on the organization's objectives. The structure of an organization will determine the modes in which it shall operate and will perform.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities. Ordinary description of such entities is as branch, site, department, work groups and single people. p> Organizations can be classified into four main types: line, line-and-stuff, committee, and, matrix organizatio...
