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Nature of Organization

The document discusses the nature and structure of matrix organizations. [1] A matrix organization employs a multiple command structure where projects are managed across functional departments that share resources. [2] For a matrix structure to be effective, there must be agreement on how resources are allocated between managers and a willingness to resolve conflicts. [3] While matrix organizations allow for specialized expertise and flexibility, they can also lead to complex relationships, power struggles, and delays in decision-making due to a lack of clear lines of authority.

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1K views4 pages

Nature of Organization

The document discusses the nature and structure of matrix organizations. [1] A matrix organization employs a multiple command structure where projects are managed across functional departments that share resources. [2] For a matrix structure to be effective, there must be agreement on how resources are allocated between managers and a willingness to resolve conflicts. [3] While matrix organizations allow for specialized expertise and flexibility, they can also lead to complex relationships, power struggles, and delays in decision-making due to a lack of clear lines of authority.

Uploaded by

ravikaran123
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Nature of Organization

The following points explain the nature of organization

1. Structure of relationships: organisation is a system of well defined tasks and


duties assigned to people along with delegation of authority, responsibility and
accountability. Delegation provides formal structure to the organisation.
Constant interaction amongst individuals creates social relationships and
structure of informal organisation.
2. Managerial function: it is a function of management which integrates human
and non human (physical) resources for achieving organizational goals. It is a
function in itself and also helps in performing other managerial functions. for
planning , directing and staffing functions to be effectively performed, it is
necessary that they are effectively organized.
3. Ongoing process: organizing is a process which involves a series of steps, from
determination of objectives to accomplishment of objectives. It is a continuous
process which requires management to introduce changes (re-organization) in
the way an organisation works. Many organizations’ restructure their set-up
every five to seven years.
4. Encourages teamwork: Since the early times, people always lived in groups.
With increase in size of these groups, it was not possible for one person to
accomplish the organizational task alone. The work therefore, got divided
amongst people and each person coordinated his work with others. This
required organizing the group activities toward a common goal. According to
Louis A. Allen: “Organization has enabled men to increase their reaches far
beyond the dream of the wealthiest potentates of old by making effective use of
a potent multiplier-machine, power and mechanized tools”. Organization comes
into existence when there are a number of persons in communication and
relationship to each other who are willing to contribute towards a common
Endeavour.
5. Foundation of management: Success of an institution depends upon its sound
organisation. Clear definition of jobs and their division amongst members with
clear identification of authority and responsibility is the foundation of
successful management. Unless there is clarity of who is responsible to whom,
no management can function effectively.
6. Goal-oriented: Every organisation is formed for some objective; profit or
service. All organizational activities are divided amongst members, department
are created, work is co-ordinate and continuous monitoring of activities is done
to achieve the objective. The process of organization is, thus, a goal-oriented
process.
7. Adaptive to change: Though organization structure provides stability to
activities of members, it is open to change. Changes in the environment,
internal or external, are incorporated in the organization structure. This makes
organization an ongoing process.
8. Situational: No structure can be described as best. Depending upon the nature
of activities, size of the organization and nature of relationship amongst people,
the organisation structure also varies.

MATRIX ORGANISATION
There are several departments under matrix organisation each department is
assigned with a specify task. The available resources of organization can be used
by each department along with the co-ordination of other departments in an
organisation.

All to Stanley Davis & Paul Lawrence

“Matrix organisation is any organisation that employs a multiple command


structure but also reflected support mechanism & an associated organizational
culture & behavior pattern. The M.O may be followed where a large no. of small
projects have to be managed.

DESIGN OF MATRIX STRUCTURE


Condition for Effective Matrix Organisation.

The matrix org. can effectively function of the fall. Conditional are present:-

(1) The principle of scalar chain of command is not followed in the matrix
organisation. A project manager should give her report to more then one
superior.
(2) These should be an agreement among the managers regarding the authority
of utilizing the available resources. The term resources include physical
resources, biannual resources & human resources.
(3) A conflict may arise among the managers regarding the utilization of
available resources. These should be a common willingness among the
authority holders to face the conflicts with a view of resolving them.

METRITS OF MATRIX ORGANISATION

The merits/advantage of a M.O is as follow

(1) Achievement of objectives: the M.O tells the benefit of functional org. &
line & staff org. it ensures the achievement of objective with technical
specialization.
(2) Best Utilization of resources: The available resources are used by the
managers for the available project. At the sometime, the resources are
utilized by the managers with full understanding among them.
(3) Appropriate Structure: M.O is an appropriate structure of an org. to adapt
to the external changes. Eg. In order to service the competition, M.O is used
to meet customer demands. According to the expectations arthout affecting
the marketing of the exerting products.
(4) Flexibility: M.O is a highly flexible org. the sure & procedures are framed
on the basis of the experience of the org.
(5) Motivation: If any department is functioning slowly towards the
competition of the particular project proper motivation is provided to the
concerned department.
(6) Personal development: M.O given an excellent scope for & development
of efficient person.
DEMERITS OR MATRIX ORG
The falls are the demerits or disadvantage of M.O
(1) Complex relationship: The M.O does not follow the principle of scalar
chain of command. Here, a single person given report to more then one
superior, It entails in having less opportunity for having support with
their respective superiors.
(2) Struggle for power: A subordinate is controlled by many superiors. It
means the power is used over the subordinate by many authority holders.
It results in delay in the completion of the project.
(3) Exercise, emphasis on group decision making: The available
resources are utilized by the departments for taking group decision.
These are no spirit of accommodation & understanding under the M.O so
these is delay in taking a group decision. It leads to delay in the
completion of the project.
(4) Arising Conflict solution/solving questions: The resolution or the
decision is taken under M.O unit to much of self analysis of decision
making. The work of decision making or the manager may be slow in the
accomplikment of the project.
(4) Heterogeneous
A M.O is created by deputing the staff temporarily. These are skilled by
professionals of various departments. It is difficult to co-ordinate the work
of the skilled staff members when these are a lock of unity of command in
an organisation.

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