A matrix structure is where managers group people
and resources in two ways by functions. Grouped workers can learn from
each other, become more skilled, more flexible, and more productive. Members
from different departments can work together to develop a product (Jones,
Gareth, George, Jennifer). A pro of this type of system is its delicate
balance of power (Liu, Cui Shunji, Valjakka, Julius, Croonen Dirk). Other
advantages include: leading to an efficient exchange of information,
departments working close together and communicating with each other frequently
to solve issues. The matrix structure encourages a democratic leadership style.
This style incorporates the input of team members before managers make decisions.
The ability to contribute valuable information before decisions can lead to
employee satisfaction and increased motivation (Johnson, Rose).
Some disadvantages include: dispensing power between workers, high cost,
excessive turnover, and interpersonal conflicts (Liu, Cui Shunji, Valjakka,
Julius, Croonen Dirk). A matrix structure has internal complexity and some
employees can become confused about who is their direct supervisor. An employee
within a large organization may receive different directions concerning the
same thing from supervisors from other departments. The dual authority and
communication problems may cause division among employees and managers.
Miscommunication and ineffective managing can result in employee
dissatisfaction and low morale. Prolonged issues may cause an organization to
experience high employee turnover and it can be expensive (Johnson,
Rose).
A product team structure is
where employees are permanently assigned to a cross- functional team and report
to a product team manager. It differs from a matrix structure by two or more
people reporting to higher management and employees are assigned to a
cross-functional team that brings new or redesigned products to the market
(Jones, Gareth, George, Jennifer). A cross-functional team is a group of
managers brought together from different departments to perform organizational
tasks. Advantages include team members who support each other, make their own
decisions, and rely on their own expertise to make changes in processes,
policies and procedures. Self-contained teams stay focused on their tasks.
Within a cross-functional team communication is better between members.
Disadvantages include lack
of management structure by design, effective project management and inefficient
resource allocation. To be more successful this style of management needs
team members that are competent, and highly trained team leaders (Duggan,
Tara). Individual teams may develop ideas and products in isolation without
realizing the impact on other company employees, customers, products or
services. This leads to less organizational collaboration and sharing of best
practices, which could result in higher costs, increased waste, and decreased
customer satisfaction (Duggan, Tara).
A multidivisional
structure is composed of separate business units that work together to produce
a specific product for a specific customer. Some advantages include: allowing a
team to focus upon a single product or service, having its own president or
vice president which makes it more likely the division will receive the
resources it needs from the company; and it allows it to build a common culture
which contributes both to higher morale and a better knowledge of the
division's portfolio (Gillikin, Jason).
Some advantages of a multidivisional
structure include: allowing a team to focus upon a single product or service,
having its own president or vice president which makes it more likely the
division will receive the resources it needs from the company; and allows to
build a common culture which contributes both to higher morale and a better
knowledge of the division's portfolio (Gillikin, Jason).
Some
disadvantages include: some corporate employees may duplicate the activities or
efforts of divisional employees and it can minimize flexibility within a
company. There may be strict corporate policies from the main office that
can limit certain divisional efforts or strategies. Multidivisional structures
can cause competition among divisions and their incentive packages. Many
managers and sales reps can earn bonuses that can be very costly (Stuttle,
Rick).
I
think that a product team structure can be the most effective for this web
company. For example, within my high school, there was a group of workers that
formed the student awareness team (SAT). Expert workers from each department
would meet together every other week and compare interactions with troubled
students. They would work together to develop a behavior management plan.
They had only one direct supervisor that attended the meetings. He would
keep the team on track and enforced short turnaround deadlines. Every
member of the team answered directly to only one supervisor. That supervisor
would be responsible to report to higher level supervisors to validate
functions and actions by the team. All team members would meet in groups
of two or three and communicate between meetings to update behavior plan
implementation, devise new plans, and establish recommendations before the
meeting. This would empower each team member and also hold each worker accountable. This
approach keeps workers more satisfied within the working structure and clearly
indicates which members are being productive and which are not.
Bibliography
Duggan, Tara. "The Disadvantages of Team-Based
Organizational Structure." Small Business. N.p., 2 June 2012.
Web. 22 Oct. 2013. http://smallbusiness.chron.com/disadvantages-teambased-organizational-structure-22216.html.
Gillikin, Jason. "Advantages &
Disadvantages of Divisional Organizational Structure." Small
Business. N.p., 13 Nov. 2011. Web. 22 Oct. 2013. http://smallbusiness.chron.com/advantages-disadvantages-divisional-organizational-structure-611.html.
Johnson, Rose. "Advantages & Disadvantages
of Matrix Organizational Structures in Business Organizations." Small
Business. N.p., 5 July 2011. Web. 22 Oct. 2013. http://smallbusiness.chron.com/advantages-disadvantages-matrix-organizational-structures-business-organizations-26350.html.
Liu, Shunji Cui, Julius Valjakka, and Dirk Croonen.
"Matrix Structure 1." Matrix Structure 1. Slide Share, 16
Jan. 2013. Web. 22 Oct. 2013. http://www.slideshare.net/JuuliusV/matrix-structure-1.
Suttle, Rick. "Multi-divisional Structure
Disadvantages." EHow. Demand Media, 20 May 2011. Web. 22 Oct.
2013. http://www.ehow.com/info_8458169_multidivisional-structure-disadvantages.html.