Evaluate the Advantages and Disadvantages of two Types of Organisation Structures Including the Reasons Underpinning them

Matrix Organisation Structure

This is an organisational structure where individuals are organised around multiple dimensions, such as product, customer, or geography (Westland, 2022). This structure is designed to improve an organisation’s cross-functional teams and efficiency. It allows organisations to manage their resources and balance their workloads efficiently. The main advantages of a matrix organisation structure are flexibility and speed (Westland, 2022). This structure allows organisations to quickly adapt to changes in the market, as well as respond to customer needs more efficiently. The structure also encourages communication and collaboration between teams and improves decision-making as it encourages team members to work more closely with each other and share knowledge and resources. This helps to build trust and understanding within the organisation. However, a matrix organisation structure can result in a complex structure that is difficult to manage and understand, leading to confusion and conflict between teams and slower decision-making due to the complexity of the structure.

Divisional Organisation Structure

The divisional organisational structure is a type of organisational structure that divides a company into distinct divisions based on product lines, functions, locations or other characteristics (Gillikin, 2019). Each division has its management team and is responsible for its success, allowing the company to have a more focused and efficient approach to managing its operations. The divisional organisation structure benefits companies with multiple product lines or services. It gives the organisation greater control over the decision-making process and provides a more focused and efficient approach to managing its operations. This type of structure is beneficial because it allows the organisation to have greater control over the decision-making process, as decisions can be made at the divisional level by people who understand the specific needs of that division. By dividing the company into separate divisions, each with its expertise and resources, a company can ensure that each division can focus on its area and produce the best possible results. This is particularly useful for companies that produce many products or services, as each division can be designed to focus on one area and thus be more productive and efficient. However, in this structure, there is a lack of coordination between different divisions of the company. This can lead to different divisions making decisions that are not coordinated with each other, leading to inefficient processes and operations. Also, with each division working independently, communication can become difficult, leading to a lack of understanding of the company’s overall strategy and goals.

References

Gillikin, J. (2019) Advantages & Disadvantages of Divisional Organizational Structure, Small Business – Chron.com. Chron.com. Available at: https://smallbusiness.chron.com/advantages-disadvantages-divisional-organizational-structure-611.html  

Westland, J. (2022) Matrix organizational structure – A quick guide, ProjectManager. ProjectManager.com. Available at: https://www.projectmanager.com/blog/matrix-organizational-structure-quick-guide.