Matsu*censored*a Corporation and Lonhro East Africa.Advantages1.It improves coordination among divisions with similar strategic concerns and market environments.2.It tightens the strategic management and control of large and diverse business interests.3.Facilitates distinct and in-depth business planning at the corporate and business levels.4.It helps channel accountability to distinct business units.Disadvantages1.It places another layer of management between the division and corporate management.2.It may increase dysfunctional competition for corporate resources.3.May present difficulties in defining the goal of the group Vice President.4.It may present difficulties in defining how much autonomy should be given to the group Vice President and Divisional Managers.3.2.5Matrix OrganizationAs large companies increase diversity, the result is the upsurge of numerous product and project effort of major strategic importance.This may need an organization form that provides skills and resources when and where they are most vital. The Matrix Organization meets this need by providing dual channels of authority, performance responsibility, evaluation and control.Essentially, subordinates are assigned both to a basic functional area and to a project/product manager.This structure increases the number of middle level managers who exercise general management responsibilities.Although the Matrix structure is easy to design, its difficult to implement. The dual chains of command challenge fundamental organization orientations.Examples of this structure can be seen in Citicorp and Shell Oil.Advantages1.It accommodates a wide variety of project oriented business activities.2.Provides good training ground for strategic managers.3.It maximizes the efficient use of functional managers.4.It helps foster creativity and provides multiple sources of diversity.5.Gives middle management broader exposure to strategic issues.Disadvantages1.It may result in confusi...
