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WK 4 - DQ 1
Course: BUSINESS M MGT 498, Spring 2012School: University of Phoenix
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Week4Assignments DiscussionQuestion#1:"OrganizationalStructures": Howdoesfunctionalorganizationalstructuredifferfrommatrixstructure?Whatarethe advantagesandordisadvantagesoftheseorganizationalstructures? Wellinorderforustobeabletoanswerthesequestionscorrectly,weshouldfirstdefine eachtermtothefullest,thiswaywecanprovideanaccuratedescriptionofhowtheyare...
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Week4Assignments
DiscussionQuestion#1:"OrganizationalStructures":
Howdoesfunctionalorganizationalstructuredifferfrommatrixstructure?Whatarethe
advantagesandordisadvantagesoftheseorganizationalstructures?
Wellinorderforustobeabletoanswerthesequestionscorrectly,weshouldfirstdefine
eachtermtothefullest,thiswaywecanprovideanaccuratedescriptionofhowtheyare
different.Inaddition,itwillalsohelpustodefinetheadvatagesanddisadvantagesofeachterm
aswell.Accordingto(Wheelen,&Hunger,2010,p.147),"functionalstructureisappropriatefor
amediumsizedfirmwithseveralproductlinesinoneindustry."Nowthatwehaveanideaof
whatafunctionalstructurestandsfor,letusmoveontoaMatrixstructure.Accordingto
(Wheelen,&Hunger,2010,p.285),"Inamatrixstructures,functionalandproductformsare
combinedsimultaneouslyatthesameleveloftheorganization."
Nowthatweknowwhateachofthesetermsstandfor,ourtextbookgivesusagreat
descriptionofhowthesetwotermsaredifferent.Forinstance,"mostorganizationsfindthat
organizingaroundeitherfunctions(inthefunctionalstructure)orproductsandgeography(inthe
divisionalstructure)providesanappropriateorganizationalstructure.Thematrixstructure,in
contrast,maybeveryappropriatewhenorganizationsconcludethatneitherfunctionalnor
divisionalforms,evenwhencombinedwithhorizontallinkingmechanismssuchasSBUs,are
rightfortheirsituations(Wheelen,&Hunger,2010,p.285).
Theadvantagesofafunctionalorganizationisthatthistypeofstructure,helpsacompany
tokeeptrackofeachoftheirproductlinesmoreeasily,theniftheyusedasimplerstructure.
Firmsthathaveseveralproductlines,needsometypeofstructurethatallowsthemtotrackthe
progressofeachoftheseproductlinesinanaccuratebutsensibleway.
IthinkonemajoradvantageofaMatrixstructureinafirmisitallowsthefirmto
facilitaterapidlyespeciallywhenitcomestochangesinoneormoreenvironmentsthroughout
theorganization.Forexample,itallowsthecompanytoseewhethertheyhavethecapital,they
needtoexpandinaquickerfashion,thananyotherstructure.
References:
Wheelen, T. L., & Hunger, J. D. (2010). Concepts in Strategic Management and Business
Policy: Achieving Sustainability (12th ed.). Upper Saddle River, NJ: Prentice Hall.
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