Geographical Division Essay Example

Geographical Division Essay Example Geographical Division Essay Geographical Division Essay I would entirely recommend this structure as there is a local decision making at the point of contact between the organisation and its customers (e. g. customer satisfaction from local dealer). It will also be cheaper to establish local distribution factories rather than to distribute from only one location (e. g. cost of transportation shipping, if so being the case is reduced)Nevertheless it could also be expensive to have a national organisation liaising with many different regional distribution factories, whereas if all customers liaise with Head office they might need fewer managerial staff. Also contradiction in standards may develop from one area to another. Having the accountability and flexibility advantages of product-based management without the duplication and the division of the functional departments will be somehow fabulous and this is where the Matrix structure comes in, it crosses both the functional and product structure. And one of the distinctive features of a matrix structure is that the employee will report to two bosses (sometimes more) rather than the traditional one. One of these authorities, usually the functional area will manage the formal side of the employment contract (e. g. salary, attendance, appraisals etc. ); they are responsible for their own activities and staff. The other line of authority product-based is used to involve the employees in the production, selling, distribution etc. of the product. The product managers will be the co-ordinators of all the different functions towards their particular objectives. Introducing a Matrix structure to Airgen plc could have a positive affect because it has a lot to offer. The mixing of skills and expertise will be a benefit of working together in functional areas. : It will avoid Airgen unnecessary costs, since the same employees can contribute to different company projects. The head of departments will be free to organise their staff, while the production managers will be responsible for delivering the product to customers (by customer expectations)One of the main objections to Matrix is the creation of confusion over who reports to whom and about the priorities that should be attached to different tasks, occupying two roles can cause conflict between the team members, and this could lead to emotional stress. It is also difficult to demonstrate their individual contribution as they are changing from team to team. Outsiders will struggle not knowing to which line manager they will have to speak/report to. Opportunities for promotion are very limited since the movement lateral. Although the matrix structure have much to offer there is a saying that no man can serve two masters