Matrix

     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.