2.

It violates unity of commands

MATRIX
principle
ORGANIZATION 3. Difficult to define authority&
This is also called project
responsibility
organization. It is a combination of
4. Employees may find it frustrating
all relationships in the
to work with two bosses.
organization- vertical, Horizontal
SUITABILITY:
and diagonal. It is mostly used in
It is suitable in high-technology
complex projects.
enterprises.
BOARD OF
DIRECTORS
FLAT AND LEAN
MANAGING ORGANIZATIONS
DIRECTOR FLAT Organization:
Flat organizations are those,
which have relatively few or even
GENERAL one level of management. Many
MANAGER enterprises have adopted flatter
structures to reduce levels of
management and bureaucracy and
PRODUCT MARKETI FINANCE to give their workforce greater
ION NG MANAGE decision making responsibilities.
MANAGER Flat organizations are known by
their wider span of control.
PROJEC MANAGING
TA W W W DIRECTOR

PROJEC PRODUCT MARKETI FINANCE HR

W W W
TB ION NG MANAGE MANAG
MANAGER

MERITS: ADVANTAGES:
1. It offers operational freedom and 1. Fewer levels of mgmt. & Decision
making
Flexibility 2. Lower supervision costs
2. It seeks to optimize the utilization of 3. The subordinates feel more satisfied
on the job front with greater decision
resources
making authority
3. It focuses on end results DISADVANTAGES:
4. It maintains professional identity. 1. Makes it difficult to supervise
the subordinates directly
DEMERITS: 2. Flat structures may not work
1. Calls for greater degree of co- as the business expands
LEAN Organization:
ordination Tall organizations have many
levels of management. It focuses
on vertical communication through
the levels of grades in it and it
involves a narrow span of
management
MANAGING
DIRECTOR
PRODUCT MARKETI FINANCE HR
ION NG MANAGE MANAG
Additional MANAGER

Asst. Asst. Asst.Fina Asst.

Prdcn MKTG nce HR

ADVANTAGES: 1.Tight Control&

Supervision
2.Communication wth Subordinates
z easier
DISADVANTAGES: 1. Difficult to
Co-ordinate
2. Costs (Mgmt& Admn) tend to
increase
3. Too much supervision may
hinder initiative and motivation