The Matrix Structure

1
The Matrix Structure
This is a task orientated structure. It puts
together teams of individuals with specialist
skills necessary to complete a particular project.

• This was developed to overcome some problems of
  the functional / traditional structure.
• Advantages-
• It is based on skills and expertise of workers,
  giving scope for people lower down the
  organisation.
• Fits in with McGregor theory Y.
• Disadvantages-
• Requires expensive support systems
• Coordination problems.

2
Centralisation and Decentralisation

• This refers to the extent of delegation in a
  business. A decentralised organisation will have
  a high degree of delegation lower down the
  structure (even though the manager retains
  responsibility). A centralised firm retains
  control in senior management at the centre of the
  organisation.
• ADVANTAGES OF DECENTRALISATION (or delegation)
• Reduces workload on senior management.
• Recognition and job-satisfaction for
  subordinates.
• Prepares middle and junior managers for internal
  promotion.
• Subordinates often have the specialist knowledge.
• Firm is more flexible and sensitive to change.
• FACTORS FOR SUCCESSFUL DECENTRALISATION
• Management team believe in theory Y.
• Corporate commitment to training.
• A culture of openness, flexibility and
  commitment.
• Good two-way communication.
• Few levels of hierarchy and wider spans of
  control.
• DECENTRALISATION WILL NOT WORK IF
• The business is facing a time of crisis.
• Too much rivalry between departments.
• A traditional culture has always existed.
• Leader has strong personality and equates
  leadership with control.