Organizational Structures

Matrix Organizational Structure

In the early stages of the Britt Company, it had a functional organizational structure aimed at efficient coordination of the company activities and to ensure that its employees are highly motivated. However, due to the need for prompt development of products and efficiency in meeting the customer needs, and to ensure favorable competition, the company opted for the matrix organizational structure. Through the matrix structure, the Britt Company will be divided in terms of the function and products of the company. The company employees will therefore be able to report to only two managers, that is, the functional manager and the product manager.

Advantages and Disadvantages of the Matrix Organizational Structure

Through the matrix structure, the Britt Company will derive various advantages. The structure allows for the company staff to report to a functional manager who is highly experienced and possess lots of skills. Besides, the product manager is also able to offer and set directions on issues related to the company products. The structure eases communication within the company and therefore leading to increased learning. The structure also ensures that the company products are cost effective and of high quality due to the focus by the functional and product units. Besides, it ensures the efficient use of the company resources.

The disadvantages of the structure to the Britt Company includes, ambiguity in the company roles due to the lack of clear hierarchy that needs to be followed by both the staff and the company managers. Also, the employees of the company might create control structures only defined to themselves due to a lack of a clear authority. The structure increases complexity within the organization due to the impartial nature of the structure. If the Britt Company adopts the organizational structure, then it will need to deal within increased management overhead costs.

Divisional Organizational Structure

Even though the company efficiently managed its resources when it adopted the matrix organizational structure, there was still a gap that was needed to be filled. There was need to adopt a structure that could help the Britt Company to efficiently manage its opportunities due to the international expansion. Therefore, to help the company to manage its global opportunities and gain competitive advantage in the international market, there is need for the company to adopt a global divisional structure that will help solve the control problems associated with both the functional and the matrix structures. The control problems accrued due to the increased products, geographical expansion of the company and the increased growth of the company. In a divisional structure, products functions are aligned to specific markets, product demands and the company customers. Departments in Britt Company will therefore function according to the similarities in the product they offer and also according to the geographical location of the company subsidiaries.

Advantages and Disadvantages of Divisional Organizational Structure

The advantages of the divisional structure include increased efficiency in the management of company subsidiaries differentiated by geographical locations. Moreover, the structure will work best for Britt Company due to the wide variety of products that the company deals in. besides, the company through the structure can flexibly manage its operations due to the wide varieties of products that the company produces. The subsidiaries are also able to use the resources and the brand name of the parent company. The disadvantages include inefficiencies in operations due to the separation of specialized divisions. Moreover, the company might suffer from increased overheads costs such as costs involved with the management and production processes of subsidiary companies of Britt Company.

Multidivisional Structure

Moving to a multidivisional structure is very vital to Britt Organization in order for it to gain a global competitive advantage. A multidivisional organizational structure will ensure that Britt Company runs and a number of separate subsidiaries that operate and manages different business. Despite the parent company owning the subsidiaries, Britt Company will give the subsidiaries the legal powers to act independently. For instances, the company produces several products that are differentiated by the industry classifications, and thus the multidivisional structure would be ideal in management and production of such products. Besides, the subsidiaries are located in different geographical locations across the globe due the need to expand its growth and operations. The managers are divided into corporate managers, divisional managers and the functional managers. Since the company has always been posting high profits in the previous financial year, the company will be able to manage the expenses associated with the structure.

Advantages and Disadvantages of the Multidivisional Structure

The advantages of the structure include increased effectiveness in the functional processes of Britt Company due to the labor division between corporate and divisional managers. Besides, there would be increased control of the company activities. The company will witnessed a growth in its profits as each division of the parent company becomes its own profit center.