Matrix Org Structure: Benefits & Challenges - Essay Sample

Introduction

Different organizational structures are used by managers to determine how the organizations are supposed to be managed. The type of organizational structure is determined by the size of the organization and the type of work that the organization does. The organizational structure is supposed to meet the needs of the organization to realize the goal and objectives of the organization.

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Matrix Organizational Structure

The organizational structure used first by the Abraham Grocery Store is the matrix organizational structure that combines both the hybrid and functional structure to meet the different needs of the organization (Harrison and Dennis). The matrix organizational structure is applicable for the grocery store because it has several stores located in different locations and each store have their internal management depending on the product being sold to the customers (Harrison and Dennis). However, the challenge of this organization structure is the conflict between different managers of different stores. The conflict arises because independent stores want to make their own decisions, and the decisions have to be common among all the stores hence the conflict.

There is a direct relationship between Abraham, the CEO, and the district store managers who collect information from all the 50 stores that each district manager is in charge of. The main challenge with matrix organizational is that the district managers have many store managers to manage at the same time. Therefore, they cannot know all the activities happening within the independent stores (Rothaermel). The stores need to have a manager who will be responsible for all the activities done within a specific store. The flow of information in a matrix organizational structure is not clear.

The CEO in charge of the entire Abraham grocery store will have a challenge identifying the challenges that independent stores are facing in different districts because there is no one to identify the challenge and make quick decisions to solve the challenge (Rothaermel). Different departments within a store might make a mistake or face a challenge, and there will be no one responsible for making quick decisions to rectify the challenge. The district managers will face challenges in managing independent stores.

Line Organizational Structure

The consultant has recommended line organizational structure. This the most conventional type of organizational structure. The authority flows vertically, with the top-level being the executive manager and the lowest level being the subordinate employees (Ahmady, Maryam and Aghdas 455). This is an organizational structure that reduces the conflict between different departments. The flow of authority in this type of organization structure is well established. Each manager knows there are responsibilities; therefore, there is no confusion about who is responsible for what. It is also easier for employees because they know who they are supposed to report to. Accountability is also easier because each manager can effectively manage the employees he/she is supervising.

In the case of Abraham's Grocery store, there was a high turnover of store managers because they did not have control over the meat and produce stores. Their authority and responsibilities were limited so they could easily skip work (Ahmady, Maryam, and Aghdas 456). With the reorganization of the store, the thing would run smoothly. The line of authority is clear. The grocery, meat, and produce departments all needed to report to a store manager. The store manager can easily control the activities of all the activities that take place in the three departments and ensure that everything runs as expected.

The department manager is also given the responsibility of working together with the district meat specialist to ensure that everything in the department runs smoothly. Each store produces department manager would communicate and coordinate the activities of the department with the district produce specialist (Ahmady, Maryam and Aghdas 455). The proposed organizational structure vests more freedom to the store managers. The new structure will also encourage coordination between different departmental managers and their respective specialists. Giving the departmental managers some authority will help in listening to customer needs and taking necessary measured to satisfy them. The dashed line relationship with respective specialists is significant in ensuring that the goods provided to customers are of high quality.

Advantages of Matrix Organizational Structure

Before considering changing, Abraham's grocery store was using a matrix organizational structure. Since the employees are grouped simultaneously, it is possible to manage a large company that has different departments. The structure's complexity and flexibility facilitate the functioning of different departments. The structure brings together the managers and employees to work towards the attainment of a specific goal. Matrix organizational structure facilitates effective and efficient exchange of information.

Disadvantages of Matrix Organizational Structure

One of the disadvantages of Matrix organizational structure is internal conflicts that arise due to a lack of a clear flow of authority (Ahmady, Maryam and Aghdas 457). There is a dual authority that is likely to cause disagreement between the management and the employees. This type of organizational structure fosters miscommunication, thereby resulting in dissatisfaction. Some managers may feel that their responsibilities are being stepped on and subsequently may lead to high employee turnover. The matrix structure is expensive as it adopts dual management, which means that more resources are required.

Advantages of Line Organizational Structure

One of the advantages of the line organization structure is simplicity. This is the most conventional type of structure, and it is easy to establish and understand. Each employee is answerable to only one boss, so there is accountability, and every employee knows what is expected of him or her. Both authority and responsibility are clear (Ahmady, Maryam, and Aghdas 457).

Additionally, line organizational structure facilitates coordination and effective communication between the managers and the employees. Decisions can be made faster, and there is unity of command. It is also easy to supervise and control all the activities that are carried out in different departments. Line organization is also less costly as compared to other types such as matrix organization structure.

Disadvantages of Line Organizational Structure

Inline organization structure, there is a lack of specializations since managers cannot be specialized in all fields. Additionally, there is a lack of coordination between various departments as compared to matrix organizational structure (Ahmady, Maryam, and Aghdas 458). This type of management structure may create instability, especially when one of the managers disappears from the organization. This is other managers in different departments cannot take up the responsibilities of a manager in a different department.

While line management is has a number of demerits, it is the most suitable in dealing with the management issues in Abraham's grocery store. Line organizational structure will be effective in dealing with dissatisfaction and conflicts among the managers between the managers and the employees (Ahmady, Maryam, and Aghdas 458). Accountability will also be guaranteed because the store manager can oversee and control all the activities taking place in all the departments.

Works cited

Harrison, Frederick, and Dennis Lock. Advanced project management: a structured approach. Routledge, 2017.

Rothaermel, Frank T. Strategic management. New York, NY: McGraw-Hill Education, 2017.

Ahmady, Gholam Ali, Maryam Mehrpour, and Aghdas Nikooravesh. "Organizational Structure." Procedia-Social and Behavioral Sciences 230 (2016): 455-462.