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Departmentation by matrix

25 February, 2015 - 12:53

Some firms are organized by using a mix of departmentation types (matrix organization). It is not unusual to see firms that utilize the function and project organization combination. The same is true for process and project as well as other combinations. For instance, a large hospital could have an accounting department, surgery department, marketing department, and a satellite center project team that make up its organizational structure.

  • Once the bases for departmentation are determined, another problem of structure immediately arises concerning how many departments or how many individual workers should be placed under the direction of one manager. This is referred to as a span of management or span of control issue. A number of factors should be considered when deciding upon a span of control:
    • the complexity of the subordinates’ jobs and need for interaction with management
    • the complexity of the supervisors’ jobs
    • the competence of the supervisors and subordinates
    • the number and nature of the supervisors’ other interactions with non-subordinates
    • the extent to which staff assistants provide support.