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Break Financial Limits

Organization structure refers to a system or way in which an organization uses to coordinate individual or teamwork in an organization, it is a  formal communication channel describing how separate actions of an individual is linked together in the organization

A Matrix organization: Is a system of an organization structure which its design combines a mix operation system (functional structure with a product structure). It is mostly used to balance the benefits of a product-based and traditional functional structure. Matrix structures also create in response to uncertainty and dynamism of the environment, helping the organization in creating particular attention to a specific product or project.

Challenges of reporting to more than one manager in the matrix organization

The matrix organization system may lead to ambiguity or role conflict due to multiple leaders’ influence on the employees. The system situation is ripe for conflict as managers are in charge to guide multiple behaviors of each employee. The system may lead to power struggles or turf wars between and more managers, due to interdependency. Matrix organization systems may lead to potential interpersonal conflict among team members and leaders. Instructions or objectives may not be achieved because they are mutually exclusive. Working with an employee with the different functional background may increase potential task conflict at workplace

Benefits

Matrix organization system, as opposed to the product department, helps to increase better communication and cooperation among departments as a manager needs to coordinate actions with other department managers. It also helps to increase the level of frequency of information both formal and informal communication within the organization. Matrix structures provide benefits for fast responses to technical issues and customers’ demands. The system creates an opportunity for specialization allowing managers to keep the focus on the product or service provided

Boundary-less organization: This system is an organizational structure that discourages and eliminates traditional barriers between various departments, also between the organization and its external environment

The system has various types in which one of them is modular organization, in this system, all nonessential functions are outsourced, and this format retains only the value-generating and strategic functions, making the rest of the operations to be outsourced by many suppliers.

Another type of system is Strategic alliances, this system is similar to a joint venture system, it allows two or more companies to find an area of collaboration/combine efforts to create a partnership that will be beneficial for both parties. Traditional boundaries between two competitors may be broken via this system

Advantages

The system helps to achieve efficiency and quality in its operations

A boundary-less organization may help the organization gain an important head start in the marketing and distribution of its product. The system may help eliminate the barriers separating employees which may be intangible barriers such as traditional management layers or actual physical barriers (walls between different departments)

Disadvantages

The system create self-managing teams environment which encourages employees to coordinates their efforts and change their roles to suit the demands of the situation leading to I don’t care attitude (“not my job”)

A learning organization: This system is designed for the acquisition of knowledge and change behavior, and this is done through newly acquired knowledge. The system encourages an opportunity for an experiment, learning new things, also it allows the employees to reflect on new knowledge and norms. The system creates an opportunity for innovation and it enhances creativity making it easier to achieve organizational change.

Actively design seeks to acquire knowledge and change behavior as a result of the newly gained knowledge