The document discusses different types of organizational structures - functional, divisional, matrix, and project-based structures. It provides examples of each type of structure and analyzes their advantages and disadvantages. The matrix structure combines functional and project-based reporting where employees report to both a functional manager and project manager. While the matrix structure aims to leverage different departments, it often results in increased bureaucracy, workload, and lack of clear responsibility. Finding the most effective organizational structure depends on the needs and goals of the specific organization.

1. SEMESTER-1 ENROLL-77115001387
AKASH DIXIT
ASSIGNMENT-MANAGEMENT THEORY AND PRACTISE
1) Matrix organisational structure : The matrix organisational structure is one of the
most complex organisational structures. This structure is developed to complete a
particular project or a special task. Thus, in this structure, employees from different
departments of the organisation temporarily work together. For example, the new
product development project of an organisation requires experts from different
departments like finance, product engineering, production, marketing, sales, research
and development, etc.
In the matrix structure, there is no particular direction of authority and responsibility and
a single individual may receive commands from two different sources at the same time
namely functional man- ager and project manager. Functional managers are responsible
for heading departments such as engineering and marketing, while project managers
supervise employees working on specific projects in different departments. The authority
of functional manager flows down- wards, whereas the authority of project managers
flows horizontally. Thus, in the matrix structure, authority flows downwards and across.
In a nutshell, it can be said that the matrix structure links employees, tasks, and
technologies by combining two or more departments with- in the organisation with the
aim of leveraging the benefits of all the departments. Citigroup is the example of the
organisation that uses the mixed model approach.
The advantages of the matrix organisational structure are as follows:
 Sound decisions: In the matrix organisational structure, decisions are taken by
experts. Thus, the decisions made in this structure are always effective and
valuable.

2.  Development of skills: The matrix organisational structure helps in widening
the skills of employees. For instance, marketing people can learn about financing
if they need to report to finance man- agers.
 Effective strategic planning: By delegating the tasks to project managers, the
top managers can easily concentrate on effective strategic planning.
 Optimum utilization of resources: The matrix organisational structure makes
optimum use of human and physical resources as there is no duplication of work.
Thus, there is no wastage of resources in the matrix organisation.
 Team effort: In a matrix organisational structure, the employees work as a team
to accomplish a particular task or project. This facilitates effective coordination
among employees and motivates to achieve the pre-defined goals.
The disadvantages of the matrix organisational structure are as follows:
 Increase in workload: In a matrix organisational structure, man- agers and
employees have to not only do their regular work but also manage other
additional tasks like attending various meetings. This leads to high workload on
managers and employees.
 High operational cost: In a matrix organisational structure, costs are incurred
on paperwork, reports generation, meetings, etc. This leads to an increase in
operational costs of an organisation.
 Absence of unity of command: There is no unity of command as an employee
faces multiple commands from different managers. This may lead to chaos and
ambiguity in roles and responsibilities.
 Complexity: In the matrix structure, the size of hierarchy is too large. Thus,
there are higher chances of chaos and confusion in this structure.
Some structures of Matrix model:

3. Example of Matrix Organisation structure-

4. Looking through some results then I found something very interesting about Mckinsey &
Company how really they overcome their organizational troubles by forming a better
structure for their employs. Insoluble conflict? The chief executive of a consumer-goods
company decided a few years ago that he saw a way to resolve such differences between
managers. He had just read about matrix organizations and concluded that a matrix
structure would, in effect, leave managers no option but to interact effectively with each
other—not only “vertically” with their line superiors and subordinates, but also
“horizontally” with their peers along major financial, geographic, product and/or segment
dimensions. Everyone would have to talk to everyone else. The ideal solution, he decided,
after much thought. So he took the plunge.
Three years later, however, the company was losing momentum faster than before. Major
issues were taking longer to resolve, and the CEO was constantly called in to referee
disputes between product-line, geographic, and functional chiefs. Too often, what tardily
emerged from the decision process was a lowest-common-denominator political
compromise. Top managers were spending more time than ever before in meetings or in
airplanes taking them to and from meetings. Gamesmanship and political jockeying were
widespread. The volume of detailed analysis, by the CEO’s own careful assessment, had
nearly doubled; much of it seemed to be aimed at “nailing” the other guy on trivial points.
Buck-passing had become a fine art; the product managers blamed the production people,
and vice versa. It was tougher than ever to get products to market; new product
opportunities were slipping by time and again because engineering would never let go. In
short, the CEO had never been so frustrated, so aware of managing a bureaucracy. He
could no longer pin responsibility for results on anyone, and nobody but him seemed to be
worrying about the big picture. Much the same story has been enacted in many large
corporations in the past few years. Up through the early 1950s, most companies were
functionally organized. The postwar boom and subsequent economic growth led to
mushrooming product lines and organizational complexity. During the late 1950s and
1960s, many companies sought to regain control and achieve “product-line rationality” by
shedding their traditional functional organizations for a divisional structure based on the
model initiated by General Motors and DuPont in the 1920s. For most the move proved
successful; strategies became more coherent and divisional managers could be held
broadly accountable for their operations.
In the mid-1960s, however, longer-range, more elaborate capital-investment projects
called for a partial recentralization of corporate decision making. As a result, neither staff
(planning) nor line (division management) could be held clearly responsible for medium-
or longer-term performance.
New threats to divisional autonomy had appeared in the 1970s, as requirements imposed
by foreign governments hampered businessmen’s efforts to maintain the integrity of their
product lines worldwide. At home, proliferating regulations from the Occupational Safety

5. and Health Administration, the Department of Energy, the Environmental Protection
Agency, and other governmental agencies demanded centralized corporate response.
Problems arising from product-line growth and attendant shorter life cycles called for
more attention by headquarters to various engineering and manufacturing issues.
Typically, business’s response went through three phases. In Phase 1, inspired perhaps by
the spectacular success of project management in the Polaris missile program and the even
greater triumph of NASA’s moon-shot project, companies first set up “project teams” as a
means of securing a coordinated functional, geographic, and divisional response to
various current threats. Teams and task forces multiplied, often doubling or tripling in
number in the space of a few years. As the teams proliferated, the sense of urgency that
had attended their creation began to evaporate, established channels of responsibility and
authority began to be blocked or bypassed, and teams began to get in each other’s way.
Clearly, something had to be done to regularize matters again.
In Phase 2, matrix was embraced by an influential minority of large and sophisticated
companies as the only organizational answer. For some, however, the honeymoon
promised by matrix never materialized, as the examples in the exhibit indicate. For others,
the honeymoon was quickly succeeded by the disillusionment of Phase 3, the situation
described at the beginning of this article. Some CEOs reacted to Phase 3 by calling in
behavioral scientists. “Team building” and “conflict management” became the order of
the day. But the objectives of these efforts were unclear, and the headaches only got
worse. In other companies—mostly giant corporations boasting “advanced” matrix
organizations—open conflict was replaced by a silent battle of memos and “economic
models.” Organizational Maginot Lines were built. Bureaucracy burgeoned and corporate
performance continued to deteriorate.
Functional organisational structure: It is an organisational structure in which
individuals with similar functional areas or skills are grouped in separate units. These
separate units are directly controlled and coordinated by the top management of the
organisation. The functional organisational model is suitable for large- scale organisations
having a limited number of products.

6. Divisional organisational structure: An organisational structure in which an
organisation is divided into different independent units is called divisional organisational
model. The division is made on the basis of product, market, and geographic region of the
organisation. For example, if the organisation has three different product lines, it would
have separate divisions for these product lines. This is one of the most widely used
structures by organizations.
Example of the Divisional Organization Structure-
ABC International has just passed $250 million in sales, and its president decides to adopt a
divisional organizational structure in order to better service its customers. Accordingly, he adopts
the following structure:

7.  Commercial division. Focuses on all commercial customers, and has its own product
development, production, accounting, and sales employees.
 Retail division. Focuses on all retail customers in the United States, and has its own product
development, production, accounting, and sales employees.
 International division. Focuses on all retail customers outside of the United States. It shares
product development and production facilities with the retail division, and has its own
accounting and sales employees.
2. In a very simple way I would like to describe this answer in my own words so let’s
proceed further after completing my Intermediate, now it’s the time for me to choose a
discipline for my career so that I could execute my plans and fulfill my dreams so I
decided to take an attempt for IIT-JEE and other competitive exams like AIEEE, UPTU
and other engineering entrance exams. As I secured very satisfactory marks in my
Intermediate exams so I decided to go to Kanpur for JEE preparation and stayed there for
a year preparing for the exams with my full efforts but at the last time I failed I could not
perform well and can’t get any selection in any Government Institute after one year drop I
realized that I was not well organized and didn’t give the final touch to my study which I
studied thoroughly for whole year , so I again raised my morale and again decided to
prepare for self at home for the entrance exams of Engineering. But during this time I
have to suffer a lot due to my neighbor’s after that I did not loose my hope and focused on
my studies and prepared well for also other competitive exams like AIRMEN and this
luck favored me and got selected in AIRFORCE but due to some reasons I didn’t join
AIRFORCE so I moved on but at that I focused over the preparation of AIRFORCE I
lacked my engineering preparation. But as my parents knew already that I want to be an
Engineer so they took me to Engineering college for admission. I took admission in
Bachelor of technology of MU. When I was in first semester I was not organized like
making notes during the lectures and listening to my teacher carefully so this thing taught
me a lesion in my major exams of 1st
semester. Some how I managed to pass with 73%
but this was not enough for me as I believed my abilities that I can secure or attain much
more than that so I decided for the next semester that I will study hard so I did same in
second semester but result was not fair enough and I lacked the percentage which I
maintained in the previous semester. But as I know I have not to loose hope and I will my
best next time so I started analyzing things what are the main things , what is wrong that I
am unable to score 75% so I cam to know with some conclusion that I should be
organized , focused, attentive , curious and smart by these things it took some time but
gradually I adopted these things which helped me a lot during my graduation life . I learnt

8. a lot of things during this time period as I often forgot birthday of my friends on their
anniversary so that’s also make me responsible for those accidents not to let them happen
again. There aroused lot’s situation in front of me where I found myself that somewhere I
am not well organized I need to work on this to overcome these situation or not to face
those things again , as the time passed after some time I would be in any organization so I
need to work on such things like maintaining things and organizing them in well or
professional manner.
During this time period I thought what else I should do except my study so I started
participated in cultural activity or any kind of activity so that I could improve my
weakness because this is the right time and situation for me learn and bag some important
skills for upcoming time so started working over those things and learnt things from my
failures and started winning the conditions against me even though some how I managed
to escape and successfully tackle the situation.
According to Harris, “ Decision making is the study of identifying and choosing
alternatives based on the values and preferences of the decision maker. Making a decision
implies that there are alternative choices to be considered, and in such a case we want not
only to identify as many of these alternatives as possible but to choose the one that best
fits with our goals, objectives, desires, values, and so on.”
According to Koontz and O’Donnell, “ Decision-making is the actual selection from
among alternatives of a course of action.”
In the words of George R. Terry, “ Decision-making is the selection based on some
criteria from two or more possible alternatives,”
According to Louis A. Allen, “ Decision-making is the work which a manager performs
to arrive at conclusion and judgment,”
Same in the case of if we talk about an organization makes decisions based on its needs
and preferences. Apart from this, it has not make decisions within a certain time period. In
case decisions are not made within the allotted time, it may lead to the wastage of
resources , which ultimately affect organizational performance.
In an organization, managers need to make a number of decisions on a daily basis. For
that, they need to perform a sequential process. According to Baker et al. Decision making
should start with the identification of the decision maker(s) and stakeholder(s) in the
decision, reducing the possible disagreement about problem definition, requirements,
goals and criteria,” Decision making is a systematic process and is divided into various
steps.
1- Defining the problem and collecting information- This is the first step of the decision-
making process wherein managers need to find out the problem for which a decision is

9. to be made. A problem can be related to work or employees. Irrespective of the type
of problem, it is of utmost importance for mangers to find out the root cause of the
problem and make a through analysis of the problem. This is because the wrong
identification of the problem may lead to inappropriate decision making. This would
ultimately lead to unnecessary wastage of time, cost, and efforts.
After defining the problem, managers need to gather information related to the actions
taken in the past for the similar kind of problem, consequences of the problem. This
information can be collected of be collected from various sources, such as one to one
interactions with people, magazines, newspapers, executive summaries, and vision and
mission statements.
2- Developing possible courses of action or alternatives- In this step, managers are
required to find out all possible solutions to the problem. This can be done by holding
brainstorming sessions or conducting on to one interactions with employees. This
helps in getting new ideas for problem solving. However the identification of
alternatives must not consume too much time and resources.
3- Evaluating alternatives- In this step, managers asses all the alternatives developed in
the previous step on the basis of feasibility, implication, and associated risks. In this
step alternatives that meet the requirements are selected and the infeasible ones are
eliminated from the list for further consideration. In this way, an explicit list of
alternatives is generated.
4- Selecting the best alternatives- Managers are now required to select the best course of
action for solving the defined problem. The alternative that meets the specified
requirements using the limited resources and time is generally selected.
5- Implementing the decision- This is one of the most crucial steps of the decision
making process. In this step managers implement the selected course of action for
solving the defined problem. Implementation can be effective if managers
communicate the selected course of action to employees and assign them tasks
accordingly.
6- Following u- This is the last step in the decision making process. Wherein managers
ensure that the decision taken is successful in achieving the defined objectives. In case
of any deviations, corrective actions are taken on time.
So this is how if a manager, an organization or a particular person take some decision
as mentioned above discussed points, then the life style must be affected by those
factors.
Decision making is a cognitive process that involves selecting the most appropriate
course of action from all available alternatives. It aims at identifying the problem and

10. finding out the solution to that problem. An organization needs to take into
consideration various factors before making any decision, such as economic factors,
political factors, and social factors.
Decision making is a logical process that starts with identifying the problem for which
a decision is to be made; collecting the relevant information; developing the possible
courses of action and selecting the best one; implementing the action; and following
up. It often happens in everybody’s life that by their one decision can make or mar
their career so while taking any prospective decision in life we should always put
some facts in our mind regarding how this decision would affect their life and career,
or how much it is beneficial for my career.