Matrix Organizational Structure Essay

afterwards reading the case, do you thing matrix organization structure brook always bring success? A1. Matrix structure is effective in relatively large companies that cater to the conducts of diverse markets with varying requirements. It is establish on the basis of decentralizing power to various structural and operational heads so that they understand their respective domains or geographical regions and frame strategies accordingly. It is curiously effective when an organization is in the growth phase and wants to go ball-shaped with its products and services. in that respect is a well defined hierarchy and the decisions taken by the man-to-man domain of functional heads are more often than not in sync with severally other. It lends the company flexibility and allows it to focus on multiple business goals. It also enables the company to establish economies of scale and facilitates in innovative solutions to complex, technical problems. On the contrary if a company is a s tart up phase their might be a shinny for resources in the midst of the individual departments. Here a matrix structure faecal matter lead to a state of ambiguity as the divisional officers gather in to report to multiple divisional heads which creates conflict.The individual units end up competing with each other. Also there are additional costs owing to additional management and administration requirements. In such scenarios, centralized decision make system would be more effective than the matrix organizational structure. Q2. find some companies which have failed subsequent to introduction of matrix structure. List the reasons for hardship and suggest what could be the appropriate structure for them? A2. In the 1990s, some of the jumper cable auto makers of the world resorted to the matrix structure-Toyota, Renault, Nissan, Ford, Mitsubishi etc.They were not entirely roaring in their implementation. More power was delegated to the functional heads and leads to carry out the individual processes with their resources. The reasons for their failure could be 1. The system became very complicated and difficult for the functional heads to carry out their functions. 2. There were too many functional divisions however not many engineers with the desired specializations 3. Coordination across projects was lacking 4. Each public treasury had to handle too many projects. 5. Production costs were higher 6. There wasnt adequate sharing of universal components among divisions 7.Led to competition between the individual segments for the limited resources so as to reduce cost. These industries should balance the need for a matrix structure with the specialized manpower and machines at their disposal. alternatively of resorting to too much specialization in allocating divisions, they should club specialized divisions having common raw materials and technology requirements so that the costs of production are decrease and there is efficient use of resources. Als o there would be damp coordination and synergy between the constituent divisions in such a case.