Matrix:
Two layouts exist simultaneously:
a) permanent functional teams are responsible for professionalism of work done and,
b) permanent teams consisting of members of every functional team implement specified programs; their managers are responsible for effects of the work done.
REQUIREMENTS:
1. Special managerial skills (both professional and interpersonal);
2. Direct and open communication lines going through both dimensions;
3. Flexibility;
4. Training of workers on features of the matrix structures.
PHASES:
1. Tentative cross-section of subordination lines appear (creation of substantive teams to implement given ad hoc goals);
2. Confirmation of the cross-section lines (second and subsequent goals are assigned to these teams);
3. Petrification of the cross-section lines (mature matrix structure is developed):
• Both types of lines are persistent and balanced;
• Functional managers and team ones wield in equally.
ADVANTAGES:
• Reduces the load on the top managers;
• Increases versatility of the workers;
• Enables efficient coordination;
• Good use of professional workers;
• Increases flexibility;
• Stimulates cooperation between individuals;
• Removes doubling of activities;
• Deletes, so called, blind spots;
• Better motivates workers;
• Increases workers' engagement;
• Develops workers' skills;
• Increases workers' morale.
DISADVANTAGES:
• May invoke a sense of anarchy;
• Encourages struggle for power;
• May cause conflicts, especially between professional and team managers;
• May cause discussions instead of actions;
• Requires great interpersonal skills;
• Its implementation is troublesome
32. Criteria for the selection of an appropriate organizational structure by Drucker
Criteria for Proper Organizational Structure
PETER DRUCKER:
1. Persistence (but not stiffness);
2. Flexibility;
3. Transparency (not necessarily simplicity);
4. Enabling managers and workers understanding of their place in the organization;
5. Enabling concentration on proper tasks;
6. Possibility of decision making at possibly lowest levels;
7. Minimization of possibility of conflicts;
8. Focus on results, not on efforts;
9. Possibility of simple auditing of tasks realization;
10. Possibility of self-renewal = having capacity to educate future managers.
33. Designing organizational structure.
Formal organizational structure designing
Steps by Ernest DALE:
1. Listing all activities (details of work to be done);
2. Grouping activities into packages to be done by individual workers (rarely teams);
3. Grouping individual workers into sections, departments, divisions etc.;
4. Defining principles of coordination of sections, departments, divisions etc.;
5. Testing the organizational structure (checking efficiency of its functioning);
6. Introduction of changes, if needed;
7. Approval of the organizational structure.
34. The concept of the formal structure of the organisation and the advantages and disadvantages of using the organizational charts.
Organizational structure changes might be a continuous process because factors determining organizational structure are relentlessly changing due to the different economic, social, political etc. events and circumstances;
But they should:
a) not be frequent, otherwise they would create more confusion and fear than efficiency;
b) be introduced by the end of the economic/accounting year, otherwise they would disable proper evaluation of efficiency of organizational units.
-> It is usually represented in the form of a schematic diagram.
-> Such a diagram represents:
a) managerial hierarchy (management levels);
b) activities;
c) vertical segments of enterprise;
d) division of work between levels and vertical segments;
e) subordination chains;
f) functional subordination.
ADVANTAGES:
Transparency of organizational structure:
• Who is who? (managers, subordinates);
• Who whom? (Subordination lines);
• Who to whom? (Responsibilities distribution/Delegation).
2. Evident distribution of competencies (who is doing what?).
3. Simplicity of detecting errors in the organizational structure.
DISADVANTAGES:
1. Horizontal channels of information flows and informal structures aren't/can't represented.
2. Some aspects are presented in a simplified form.