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The Characteristics Of A Matrix Organizational Structure Of Starbucks

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Matrix Organizational Structure

A matrix organizational structure is a complicated reporting structure, where relationships are aligned as a matrix or grid. This is different from the line of control in traditional hierarchical structure. The employees have two reporting relationships; a reporting relationship to a product manager and another reporting relationship to a functional manager. It brings together managers and employees to aim toward the common goal.

Starbucks has matrix organizational structure. They operate under four United States divisions including Western, Southeast, Northwest and Northeast. The advantage of this organizational structure is that communication channels are maximized. Starbucks is able to develop units according to market appeal after making adjustments in their organizational structure time-to-time. Another segment of Starbucks matrix organizational structure is the support functions that become a different department who works parallel to the divisions.

Advantages of matrix organizational structure
• Staff can be lined up on functional or product or geographic lines. This organizational structure has dual reporting relationship.
• Functional manager to whom employees report, help them to prioritize work, uses his skills to review the work and guide them.
• Product manager helps in setting the direction of products being offered by the company.
• Efficiency is more, as resources are shared across projects along with expertise and
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