Suburban Homes Company
Organizational structures are frameworks that describe how an organization is put together or, more specifically, how members are admitted, how leaders are chosen, and the decision-making procedure. Organizations develop a structure to prove guidelines to the members and to bid the members together by giving identity and meaning when they join the group (Mathur & Nair, 2016). An organizational structure is the best match for the type of organization that is created, the kind of members who are in it, and what the organization does. Additionally, there are various types of organizational structures that exist, such as functional organizations, projectized organizations, and matrix organizations. Organizations select a structure according to nature and the roles played by the organization. For instance, construction companies such as Suburban Homes that acquire land to develop homes require a carefully planned structure that ensures the correct expert resources are available when required. Therefore, the Suburban Homes that require the project’s teams to decide on the technical parts of their work while making sure that the work is done within the project’s time and cost constraints a matrix organization structure would be more suitable.
The matrix organization is a combination of both the functional and projectized structures that is lead by both the head of the project and functional manager who share authority (Lukinaitė & Sondaitė, 2017). The main aim of obtaining a matrix structure is to obtain a high level of coordination that is not possible with the conventional structures. The functional structure in the matrix organization plays the role of retaining oversight authority for the general operation of other practical units. The functional sections help to create the upright chain of command in the organization. The project team creates the parallel chain of command, and the functional streak of authority interconnects the horizontal or product lines to form a matrix. Hence, this type of organization is suitable for the Suburban Homes Company since it gives focus to specific projects where the project manager is granted the power to oversee the completion of the project. For instance, when the company is building various homes at different locations, the matrix structure will help to focus attention on the specific projects. Additionally, the matrix structure helps to bring together diverse expert skills that are important in the completion of a complex project such as constructing a home. The matrix organization structure is flexible in nature, and it is applicable to all organizational projects extending from the small to large projects. In a company that deals with construction and the market conditions and technology keep changing, a matrix structure is able to respond to the changes efficiently. Furthermore, the people engaged in the project are motivated and utilize their skills and competences to make maximum contributions to execute the project. There is improved coordination and communication through the straight contact between the scheme manager and functional groups in a matrix organization (Sytch, Wohlgezogen & Zajac, 2018). However, matrix organization contravenes the rule of unity of command since the employees from the functional departments have two bosses. Nevertheless, companies such as the Suburban Homes need to consider a well laid out matrix structure as it reduces duplication of physical resources allocated for projects in different locations.
Therefore, since Suburban Homes is considering a define, measure, analyze, improve, and control model (DMAIC model) with a traditional life project life-cycle approach adopting the matrix structure would ease the process of project management. Using the matrix structure will ensure the development of personnel through frameworks for training to develop efficient and able managers. Under the traditional structure, the managers are subject to limited functional specialization, which is in line with the Suburban Homes organization culture. Hence, the company needs to consider the matrix structure to address the issues of training, mentoring, and collaborative learning to provide the best quality homes to the clients. The members of the company will be exposed to new and complex problems, which will increase their experiences, and the transfer of skills and knowledge will occur from one project to another.
Lukinaitė, E., & Sondaitė, J. (2017). Mindset of employees working in a matrix organizational structure. Business: Theory and Practice, 18, 144-151.
Mathur, P., & Nair, M. (2016). Organization structure a key to driver to competitive advantage. International Journal of Management and Commerce Innovations, 3(2), 348-356.
Sytch, M., Wohlgezogen, F., & Zajac, E. J. (2018). Collaborative by design? How matrix organizations see/do alliances. Organization Science, 29(6), 1130-1148.
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