Advantages Of Matrix Structure

Standing on a solid foundation would create a better business. Organizational design consist of many different structures depending on what type of business an individual wants to operate. If a business owner wants more of a traditional approach they might use functional organizational structure. However, if a business owner decides on a more contemporary approach they might lean more toward the matrix structure.

Functional Organizational Structure In a functional structure the organization is set up according to its purpose. Functional organizational structure has specialized units such as; department operations, department marketing, research department and department sales. These departments report to a single authority which is known as

The employees report to their manager. The impact this has on a business it that encourages a democratic leadership style, where the employees communicate with their manager and the manager executes and follows up with their request. This gives the employees a sense of security and brings their expertise to the managers which increases morale within the workplace. The advantage of matrix structure is that it offers a high level of specialization where an employee can develop specialized knowledge as they move up within the hierarchy. In a matrix structure supervisors in different departments are assigned to work on one or more project. This may be a disadvantage because it can create power struggles. The advantage of this structure is that managers can effectively exchange information amongst themselves to create a success

Tracy Mullin’s article, Hiring the Very Best, discusses several retailers and their methods of motivation. Some motivated their employees by offering incentives that would keep them coming to work and improve performance. Mullin listed benefits such as; enabling employees to work where and when they want to work, companies offering a better pay rate and healthcare benefits than their competitors, allowing the employees to have creative authority, spending more time with bottom performers and rewarding managers who keep turnover low. Each company discussed in Mullin’s article decreased their rate of employee turnover. The motivational and benefits methods impacted the organizations by turnover and decreasing productivity. This would be a benefit to Best Buy allowing their employees to work in areas of the store where they feel comfortable with their knowledge and expertise would increase productivity and having their off days altered would make the employees morale high because they may be able to adjust their schedule to fit their family life. Costco pays their employees a significant wage which makes the employees feel like the company. The health benefits offered by Costco increase employee pay and create a secure feeling that they can provide medical care for themselves and their families. Trader Joe motivates their employees by not micro-managing and allowing creative authority. Employees take