Solution
Task Questions
- Divisional and Matrix Structure
An organisation structure is defined as a system which outline the scope of various initiatives are implemented in an organisation. According to CIPD (2025), the intention of organisation structure is to have a positive input on organisation objectives achievement. Hence, for an organisation structure, it guides on setting rules to be followed, assigned functions and responsibility assigned. Further, in an organisation structure, it guides establishment of the information flow in different organisation levels in a collaborative manner. Today, the organisation structures which can be embraced are and not limited to functional, divisional, flat structure and collaborative structure. Theor embrace in organisations are informed by a set of rational, advantages and disadvantages.
Divisional Organisation Structure
This is a type of organisation structure were an organisation is structured into different units which are autonomous (Achcaoucaou et al., 2009). These are tasked for provision of various products, services and their business environment. For example, REDTAG (My current employer) being a fashion industry company have divisions dealing with men fashion, women fashion and children fashion. Also, operating in different countries in Middle East, their divisions are different.
Advantages
Operation focus/target– The different divisions are customised to the organisation area of focus. The outcome of this is improving client’s satisfaction level and effectiveness of making decisions (CIPD Online, 2024). In REDTAG for instance, they end up prioritising on men and women fashion from the decisions made.
Highly accountable– The embrace of divisional organisation structure increases the accountability scope. This is with the divisions managing their performance hence simplifying how they track profits.
Disadvantages
Likelihood of tasks/resources duplication– In a divisional organisation structure, some of the roles can be duplicated. According to Anam et al. (2018), duplication means that some of the department’s functions which can be shared by the entire organisation are found to operate independently. The outcome of this is increasing the overall costs of operation.
Communication challenges – The embrace of divisional organisation structure affect the communication outcome. This impact collaboration for customised strategies including promotions by use of different platforms. This is with strategic consistency suffering in an event division leadership have their priority on individual goals as opposed to organisation objectives.
Underpinning Rationale– The underpinning reason for using a divisional organisation structure is ensuring that it is flexible and respond to entire market needs. According to Achcaoucaou et al. (2009), this is while aligning the competitiveness with clients’ expectations scope. With competitors of the organisation including Nike and Addidas customising their niche markets, having a divisional structure in an organisation such as REDTAG facilitate their agility. This is with maintaining competitiveness with different market scope.
Matrix Organisation Structure
This is a type of structure a combination of division and functional reporting segments facilitating employees with an opportunity for reporting to functional and project/divisional managers/leaders. For example, in fashion industry where REDTAG operates from, the embrace of divisional structure improve collaboration amongst various departments, improved service provision and effective project-based results.
Advantages
Efficient Resources Utilisation– Owing to the reporting to different structures, there is an opportunity of sharing the experts into different projects and positioning. As identified in Saunila et al. (2014), the outcome of this is improving how responses to emerging demands are made and alliances campaigns process.
Increased cross-functional teamwork– This is a type of structure used to foster innovativeness and appropriately solving problems. According to Pakarinen and Virtanen (2017), the different functions work in collaboration achieving set organisation objectives.
Disadvantages
Complexities in reporting– With project and functional leaders required to be reported to, this lead to a complex management and outcomes. This is with inefficiency in working in collaboration with conflicting priorities.
Underpinning Rationale– When there is a need to be flexible to manage operations and projects consistently and with dynamism, matrix organisation structure is used. According to Gutiérrez-Broncano et al. (2024), with an increase in expectations in business environment, matrix structure enhances how organisations are agile and integrate services provision in competitive business environment.
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