BEC has taken on the matrix organizational structure. This type of structure combines functional and divisional organization structure styles. There are advantages and disadvantages in utilizing this type of organizational structure. Advantages include resource utilization, specialization, cross functional areas, communication and flexibility. Resource utilization allows for the project departmental managers to focus on their strengths. Also, it allows for the managers to all the workers to specialize in an area of important for that project. In turn, it uses people across the company who specialize in a field that relates to the project at hand. This matrix structure permits cross departmental communication and flexibility to work on different projects across the company structure.( Guzman, 2012)
However, with advantages come disadvantage with this type of matrix organizational structure. This structure increases complexity within the organization by leading to confusion among both workers and managers. The managers may not know what a certain employee has on their plate. In reverse, the employee will obtain an overload of work because they are receiving work from two different types of managers. Another disadvantage is an increase in overhead cost for the company due to the need for double management. This double management can lead to confusion between managers as to who has the higher priority of work creating a power struggle. (Johnson, 2012)
The case study, “Beijing EAPS