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Реферат Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). Matrix organization for a small and large business: An outline, advantages, disadvantages, conclusion.


Тип работы: Реферат. Предмет: Менеджмент. Добавлен: 20.03.2011. Сдан: 2011. Уникальность по antiplagiat.ru: --.

Описание (план):

Matrix Organization Structure: Advantages and Disadvantages
By Nodir M Ataev


    Organizational Structure
    Types of Organizational Structures
    Line Organizations
    Line-and-Stuff organizations
    Committee Organizations
    Matrix Organization: An Outline
    Matrix Organization: Advantages
    Matrix Organization: Disadvantages
    Matrix Organization: Conclusion

Organizational Structure

An organization is the result of the organizing process and can be defined as a structured grouping of people working together to achieve organizational objectives.1 Every organization must choose an overall structure that meets its needs best and allows interactions among individuals and departments to attain the its goals.
For a small business, the organizing process is comparatively simple. The owner of a grocery store employs a few people to sell groceries and to take care of the supplies and personally directs business operations. The handling of such a relatively small store is more or less simple and easy.
However, as a company grows the need for organization increases. As a company enlarges its scope of business, it has to hire more employees. Instead of a single bookkeeper, it will have to employ an entire accounting department, rather than one seller the owner will need a number of them. The large number of employees makes it impossible for a single person to control the business. One or other formal type of organization becomes necessary.
To effectively accomplish their goals large organizations use various techniques such as departmentalization, delegation, and others. Departmentalization is the dividing of work activities into units within the organization. This method can be used to effectively run a large organization and has been used in different organizations throughout the world.

Types of Organizational Structures

An organizational structure is a hierarchical concept of subordination of entities that work together and contribute to serve one common aim2. The structure of an organization is usually built in one of a variety of styles, dependent on the organization's objectives. The structure of an organization will determine the modes in which it shall operate and will perform.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities. Ordinary description of such entities is as branch, site, department, work groups and single people.
Organizations can be classified into four main types: line, line-and-stuff, committee, and, matrix organizations. The classification is done according to the nature of internal authority relationships of organizations.

Line Organizations

matrix Organization committee
The line organization is the oldest and the simplest organizational structure. This structure is defined by its clear chain of command, with final approval on decisions affecting the operations of the company still coming down from the top. Because the line structure is most often used in small organizations--such as small law firms, hair salons, and small stores--the president or CEO can easily provide information and direction to subordinates, thus allowing decisions to be made quickly.
Line structures by nature are informal and involve few departments, making the organizations highly decentralized. Employees are generally on a first-name basis with the president, who is often available throughout the day to answer questions and to respond to situations as they arise. It is common to see the president or CEO working alongside the subordinates. The line organization is effective in the smallest organization only. The reason is that the manager has total responsibility for a number of activities and cannot be efficient at all of them.

Line-and-Stuff organizations

While the line structure would not be appropriate for larger companies, the line-and-staff structure is applicable because it helps to identify a set of guidelines for the people directly involved in completing the organization's work. This type of structure combines the flow of information from the line structure with the staff departments that service, advise, and support them
Line departments are involved in making decisions regarding the operation of the organization, while staff areas provide specialized support. The line-and-staff organizational structure "is necessary to provide specialized, functional assistance to all managers, to ensure adequate checks and balances, and to maintain accountability for end results"3
An example of a line department might be the production department because it is directly responsible for producing the product. A staff department, on the other hand, has employees who advise and assist--making sure the product is advertised or that the customer service representative's computer is working.

Committee Organizations

In a committee organization, authority and responsibility are in the hands of a group of individuals rather than a single manager. In this type of organization groups of individuals, or committees, make decisions together. This ensures that individuals from diverse departments make more sound decisions. On the other hand, this slows down the decision making process as each member of the committee must agree with the decision.

Matrix Organization: An Outline

A variation of the line-and-staff organizational structure is the matrix structure (matrix organization structure is sometimes called project management structure).
Matrix structures have come about as a result of coordination problems in highly complex industries such as aircraft manufacture4. The term matrix comes from the intersection of the horizontal authority-responsibility flow with the vertical flows of the traditional line-and-staff organization5.
In today's workplace, employees are hired into a functional department (a department that performs a specific type of work, such as marketing, finance, accounting, and human resources) but may find themselves working on projects managed by members of another department. Organizations arranged according to project are referred to as matrix organizations. Matrix organizations combine both vertical authority relationships (where employees report to their functional manager) and horizontal, or diagonal, work relationships (where employees report to their project supervisor for the length of the project). "Workers are accountable to two supervisors--one functional manger in the department where the employee regularly works and one special project manager who uses the employee's services for a varying period of time" 6
Matrix Organization7
As shown in the figure above, the matrix organization is built to carry out certain projects or to solve specific problems. People with diverse skills come together to implement the projects in hand. A special feature of this type of organization is that employees report to two superiors instead of one. Members of a project receive

Dual Authority Structure in a Matrix Organization10

instructions both from the project manager (horizontal authority) and from the permanent functional department heads (vertical authority).
The matrix organization type has been used in organizations such as Procter & Gamble8, the Harvard Business9 School and others.
People working in a matrix organization are often called two-boss-employees because they report to two supervisors at the same time10
The matrix organization type is also used successfully by global companies. Global companies must achieve simultaneous coordination of various products in each country they operate. These companies use geographic and product lines of authority. For example, a company producing computers globally m и т.д.................

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