Finance

The matrix structure of organization aims at combining the best of both the product and functional organizational structures.  The Matrix structure usually uses teams of employees to oversee projects or accomplish work. These teams are headed by Project Managers who are generally held responsible for the success or failure of the project. The members of the team consist of people belonging to various functions of the organization. Their main responsibility is ensuring that functional technical excellence is maintained throughout the project and that information regarding the project is shared easily and frequently (Matrix Organization and project management, 2009)

Spectrum Brands Corporation could organize using the Matrix Structure by making various cross functional team, headed by a Project Manager. Each Team might be responsible for a project relating to a specific product of the company. As mentioned in the case the company has diversified its product line and now competes in various markets. Thus a team could be working on a project related to the batteries side of the business, while another team might be working on a project related to Pet Products. Additionally each team must have team members from the various functional departments of the business (e.g. accounting, sales, marketing, customer relations etc.). This is done to ensure that a reasonable level of technical functional quality and assistance is provided to each project.

Multidivisional Structure
The Multidivisional Structure focuses on operating each division as a separate business. Each division has its own staff that is responsible for handling the important functional aspect related to that division. A division may even have its own President. Top Corporate officers delegate the responsibility of the day to day operations and the divisions strategy to the division manager. The role of corporate managers here is to identify and utilize synergies between the different divisions, with the goal of maximizing the companys overall performance.

At Spectrum Brands Cooperation, divisions could be built around the various types of markets the company caters to. For example a Personal Grooming division could be built to manage the various products of the company that cater to personal grooming. The corporate level here must be responsible for formulating the companys overall long term strategic goals and implementing control procedures on each divisions to keep them in that direction. Furthermore the Corporate Officers are responsible for overseeing and ensuring that each divisions business level strategic decisions are in accordance with the organizations overall long term strategic goals. Senior and competent professional like Jones himself should be a part of the corporate level of the organization.

Furthermore the divisions could be made according to different criterias. Divisions could be made to serve geographical regions, product types, markets and any other criterion along the lines of which the company wants to organize its divisions.

Which Structure would be more Effective
In my opinion the Multidivisional structure would best suite Spectrum Brands Cooperation.
First and foremost the company has been pursuing a diversification strategy and is in the process of expansion and growth. The Multidivisional Structure of organization positively supports such a strategy by facilitating divisional heads to pursue various market place opportunities. The structure allows an organization to vastly expand its operations and to effectively manage its increasing product portfolio, by classifying them into distinct divisions. It simplifies the problem of control in such an organization, because corporate officers can more easily and effectively monitor measure and direct the performance of each product via the products respective division.  Resource Allocation is also simplified and improved, as each divisions performance can be measured and compared with another very easily. Thus resources are allocated where they are most needed or according to the companys long term strategic initiatives. Various units across an organization may work together and share information that is critical to the job, project or the work they are undertaking and thus they might benefit from synergies which ultimately further benefit the organization as a whole. Such an organizational structure might push Heads of poor performing divisions and make them more motivated to investigate and search for solutions to their problems and ways of improving the performance of their division. Therefore for a growing organization such as Spectrum Brands Corporation, which has a diversified and ever increasing product portfolio, I think the Multidivisional organizational structure would be the most suitable and effective.

Communication Problems
Both of the structures for organizations provide a lot of benefits to the organization, on the other hand they are not without costs either. If we start with the matrix structure we can observe the various cases in which such a structure has resulted in communication problems. First of all in a Matrix Structure an employee normally has to report to more than one manager, this might create ambiguity, confusion and ultimately conflict because an employee might be communicated instructions or objectives that are mutually exclusive. Secondly the structure requires increased coordination and communication which can be hindered when mangers start hoarding up information and start to refuse to share mutually beneficial critical knowledge with each other. This may occur more in an organization that has a culture of office politics. Finally
Team members might consist of individuals from different countries, religions, race and cultures, which means that there is a greater risk of communication problems and increased conflicts. Solving such problems requires patience and corrective action. Companies employing a Matrix Structure should make detailed list of chain of command, roles and duties of different individuals of a team starting from the functional mangers to the project manager. This will help solve communication problems arising out of ambiguity. Companies should also organize training sessions and workshops to develop, promote and encourage team work and interpersonal skill and the ability to effectively interact and communicate with people belonging to various cultures, races and genders.

If we consider the Multidivisional Structure of organization it employs the tallest hierarchies. Naturally when tall hierarchies are employed communication tends to become distorted. Secondly divisions may stop coordinating and communicating critical information to each other in order to compete for resources. Communication within each division may also suffer due to adverse political tactics and other reasons. Here the organization should develop and monitor proper communication channels. Both formal and informal channels must me controlled and monitored so that effective communication can take place. Corporate leaders should play a larger role to ensure that synergy is not lost due to adverse competition between divisions for resources.

Degree of Centralization
The degree of centralization and decentralization depends upon the business level strategy being implemented in each team overseeing a project or in each division. If the organization is employing a cost leadership strategy than a higher degree of centralization is needed to monitor, regularize and measure the activities of a business, so that costs can be kept at a minimum. However if a company is pursuing a differentiation strategy than decentralization is encouraged, in order to empower the employees, to encourage them to be more creative and innovative and to entrust them with the responsibility to develop effective solutions to problems. As Spectrum Brands Corporation is expanding it has to carefully analyze its competitiveness based on price as well as differentiation. In my opinion functional mangers should be allowed higher degree f decentralization so that they can quickly and effectively develop solutions to problems that are related with the day to day functional operations of the project or division, regardless of the structure being employed. However any major decision that significantly influences or alters the business level strategy of the project or division should reside with experienced and competent project managers and division heads. This will help the organization to minimize confusion, ambiguity and would motivate and encourage employees as well.