Management and Organizational Structure
Given the business situation for Spectrum Brand p. 251, explain how the firm might organize using a Matrix structure for the organization. Spectrum Brands Corporation, after several years of producing and marketing only batteries has diversified by adding pet products, personal grooming items, and lawn and garden care products. To organize the Spectrum Brand, formerly known as Rayovac Corporation, using a matrix structure would involve setting up teams in different departments where lines of authority may intersect. This form of organizational structure is also called a project management structure. Ferrell, Hirt, and Ferrell, 2009). If Spectrum where to develop a pet product that may be battery operated, this may require employees from the pet products division and battery division to work with a project manager and their respective division managers to be successful in the development of this product. This organizational structure would be beneficial in this instance. Explain how the firm could operate using Multidivisional structure. The multidivisional structure or M-form of organizational structure organizes departments into larger groups called divisions.
These divisions could be focused on either a product, region, or customer. There is delegation of decision making authority in a multidivisional structure (Ferrell, Hirt, and Ferrell, 2009). With Spectrum’s diversified marketing, the firm could operate using a multidivisional structure by establishing divisions for each of its products. Discuss which structure would be more effective. Explain. I believe a multidivisional structure would be more effective and beneficial to the Spectrum Brand Corporation as it “helps firms successfully manage the many demands of diversification” (Organizational Structure and Controls p. 47). Since diversification is where Spectrum appears to be headed, the multidivisional structure will allow the company to “(1) enable corporate officers to more accurately monitor performance of each division, simplifying control problems; (2) facilitate comparisons between divisions, improving the resource allocation process; (3) stimulate poorly performing divisions to look for ways of improvement” (Organizational Structure and Controls p. 347). For each of your two organizational structures, give three examples of potential communication problems the structure might cause.
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Recommend corrective actions the company can take to address these issues. Matrix Structure -Potential Communication Problem When reporting to two managers employees may not know who to report to on certain tasks. Managers may have different goals or different expectations or routes to meeting a certain goal or deadline. A potential communication problem can arise from different departments collaborating with little to no knowledge of the other.
To correct these potential communication deficiencies in a matrix organization structure, I recommend management outline all job responsibilities to include reporting assignments according to tasks. Division managers and project managers should also be very detailed and specific on all job tasks collaboratively. Expectations and exact means to meeting goals and deadlines should be clearly defined with employees should problems in communication arise.
If a communication problem occurs due an issue with the lack of knowledge of a product or task management should immediately assess the deficiency and provide any training or even cross train departments to eliminate such occurrences. Multidivisional Structure-Potential Communication Problem Employees may feel less likely to air grievances. Employees may have different views or innovative ideas but feel reluctant to communicate these to management. Some product knowledge may not be shared across divisions although under the same company. Corrective Action The corrective action I would recommend for potential communication problems n a multidivisional organizational structure would include always including select lower level employees in decision making. I would also recommend cross training employees to learn other products the company markets. For each of your two organizational structures, recommend the degree of centralization that would be most effective. Explain. For a matrix structure the degree of centralization that would be most effective would be a decentralized organization. With this degree of centralization, “decision making is delegated as far down the chain of command as possible” (Ferrell, Hirt, and Ferrell, 2009 p. 44) . In a multidivisional structure a centralized organization would be most effective because of the many divisions its comprised of. In a centralized organization “authority is concentrated at the top and very little decision making authority is delegated to lower levels” (Ferrell, Hirt, and Ferrell, 2009 p. 243).
- O. C. Ferrell, (2009 Custom Edition). Business: A Changing World, Seventh Edition.
- McGraw-Hill. Organizational Structure and Controls. Retrieved May 2010 from http://asso. nordnet. fr/adreg/hitt%20et%20al%20chapitre%2011%20structure%20et%20controle. pdf
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