Mention Advantages and Disadvantages of Matrix Organization.
Date:
Submitted To:
Submitted by:
Roll No:
Section:
Batch: 1. Describe Major Principles of Organizing?
Major Principles of Organizing:
There is considerable agreement among management scholars and practitioners about a number of principles underlying the science of organizing. These principles are truths of general applicability and are more in the nature of essential criteria for effective organizing. The most essential guiding principles of organizing are summarized below: 1. Principle of Unity of Objectives: An organization structure is effective is it enables individuals to contribute to enterprise objectives. 2. Principle of Organizational Efficiency An organization is efficient if it is structured to aid the accomplishment of enterprise objectives with a minimum of unsought consequences or costs. 3. Span of Management Principle In each managerial position, there is a limit to the number of persons an individual can effectively manage, but the exact number will depend on the impact of underlying variables. 4. Scalar Principle The clearer the line of authority from the ultimate management position in an enterprise to every subordinate position, the clearer will be the responsibility for decision making and the more effective will be organizational communication. 5. Principle of Delegation By Results Expected Authority delegated to all individual managers should be adequate to ensure their ability to accomplish results expected. 6. Principle of Absoluteness of Responsibility The responsibility of subordinates to their superiors for performance is absolute and superiors cannot escape responsibility for the organization activities of their subordinates. 7. Principle of Parity of Authority and Responsibility The responsibility for actions cannot be greater than that implied by the authority delegated, nor should it be less. 8. Principle of Unity of Command The more complete an individual’s reporting relationships to a single superior, the smaller the problem of conflicting instructions and the greater the feeling of personal responsibility for results. 9. Authority Level Principle Maintenance of intended delegation requires that decisions within the authority of individual managers should be made by them and not be referred upward in the organization structure. 10. Principle of Balance The application of principles must be balanced to ensure the overall effectiveness of the structure in meeting enterprise objectives.
2. What do you understand by Matrix Organization? Mention
advantages and Disadvantages of Matrix Organization.
In a matrix organization, the functional and project of product patterns of
departmentation are combined in the same organization structure. This kind of organization occurs frequently in marketing (for example, planning and executing an advertising campaign for a major new product) in the installation of an electronic data processing system, etc. Functional departments are permanent fixture of the matrix organization; they retain authority for the overall operation of their respective units. Product departments or project teams are created as the need arises for them, that is, when a specific programme requires a high degree of technical skill in a concentrated period of time. Members of a project team are assembled from the functional departments and are placed under the direction of a project team are assembled from the functional departments and are placed under the direction of a project manager. The manager for each project is responsible and accountable for its success and has authority over the other team members for the duration of the project. On the completion of the project, the members of the team, including the project manager revert back to their respective departments until the next assignment to a project. Advantages: The problem of coordination is minimized because the project manager acts as an integrator to relate personnel from diverse disciplines. • There is a reservoir of specialists which ensures availability of expertise to all projects on the basis of their need. • There is economy in the cost. Each project is assigned only the number of people it needs, avoiding unnecessary surplus. • There is an effective information decision system which enables members to respond quickly to the change in product needs. • Is oriented towards end results. • Professional identification is maintained. • Pinpoints product – profit responsibility. Disadvantages: • A state of conflict exists between functional and project managers, as both compete for limited resources. • Role conflict, role ambiguity, and role overload may result in stress for the functional and project managers as well as for the team members. • An imbalance of authority and power, as well as horizontal and vertical influence of the project and functional managers, can also lead to problems in matrix organization. • Because of the potential conflicts, managers may want to protect themselves against blame by putting everything in writing, which increases administration cost. • Matrix organization requires many time consuming meetings.