Functional, divisional and matrix structures
Reading an organisation chart, understanding unity of command, and telling functional, divisional and matrix structures apart: strengths, limits and how to choose.
- 25 cards
- 4 topics
- Free
The outline, topic by topic
Each topic is weighted the way the exam weighs it.
- Concepts
- Questions
- Sort and link
- Scenarios
A few cards from the deck
Organisation chart: what is it?
Show the answer
A diagram of an organisation's posts and the links between them: who reports to whom, over how many levels.
It shows the official structure, not how things really work: informal relationships and each person's influence do not appear.
Léa, a developer, gets an instruction from her project lead that contradicts the one from her technical manager. Which principle is the organisation straining here?
- Unity of command
- Span of control
- Decentralisation
- Standardisation of outputs
Show the answer
Unity of command
Two superiors give orders to the same person: this is the situation in a matrix structure. Span of control is about how many reports a manager has, not how many managers a report has.
A divisional structure groups activities by product, by market or by …, each division having its own functions.
Show the answer
A divisional structure groups activities by product, by market or by geographic area, each division having its own functions.
These are the three classic ways to split into divisions. Splitting by trade gives a functional structure again.
Unity of command: what is it?
Show the answer
The principle that an employee takes orders from one superior only.
It avoids contradictory orders. The matrix structure gives it up on purpose, and pays for that choice in constant arbitration.
An SME has gone from one product to three ranges sold in four countries. Every decision goes up to the single sales director, who is overwhelmed. What is the best response?
- Appoint a second sales director at the same level as the first, to share the load
- Also centralise purchasing and production under the sales director
- Scrap the chart so that everyone decides freely
- Move to a divisional structure, with one manager per range or area
Show the answer
Move to a divisional structure, with one manager per range or area
The functional structure is saturated by diversification: everything converges on one post. Splitting by range or area brings decisions closer to the field. A second director at the same level would recreate contradictory orders.