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Logistics Assignment Sample Question
Write a case study on the Case Study-DHL Bangladesh.
Logistics Assignment Sample Question on a Sample Case Study-DHL Bangladesh
Advantages associated with having a matrix structure in an Organization:
- More cost effective solutions for manpower optimization
There are a number of organizational mechanisms which are unavailable under a one-dimensional organization. Even if the mechanisms are available, they may be too costly to utilize.
Under a matrix structure, there is always a 'budget breaking'
- Better dispute resolution
In case of a matrix structure, the higher management function as arbiters when any kind of conflict arises between the lower managers. The presence of higher level managers speeds-up the process of dispute resolution along the chain. Moreover, as the lower level managers also have an authority above to report, this prevents them from acting opportunistically(Roberts, 1990).
In case of a dispute involving root level employees, there is an immediate manager who knows the actual case very well, which is not possible if the manager is high up in the hierarchy. This also allows for better resolution of conflicts.
- Quick response and better customization
In a one-dimensional structure, an organization cannot be prompt in its response. Proper allocation of managers based on product or geography allows for a greater degree of closeness to the target customers. It also helps the end level managers to take decisions more suited to the local market. This end-of-the chain customization would not be possible if there are only high level managers to take care of who may not have complete knowledge of the real market.
- More Socialization
In comparison to a one-dimensional structure a matrix structure can make proper use of the mechanism of socialization to better curb the drawbacks of opportunism prevailing in intra-firm exchanges. Socialization is the process in which we instill in the members of the firm an incentive to act towards the larger interests of a group(Feldman, 1981) rather than working in a self-centered way. An employee can socialize when he starts promoting a group interest. The key element of the process of socialization is the creation of a psychological connection between the organization and its employees in matters such as what would lead to more benefits, pay rise, better promotion and more job security(Baker, 1985). The process of socialization is a repeated game(Kreps, 1990) where in the company constantly allocates penalties and rewards for its employees depending upon the behavior that they exhibit.
It has been found that having a matrix structure promotes a greater degree of socialization primarily managers tend to have a long-term career planning in the organization. The aspirations to always rise high up in the hierarchy make them more and more dedicated to perform and gain more rewards and accolades. They tend to have a belief that their association with the….