The matrix organizational structure at Maruti-Suzuki gives the authority to the Manager to control the structure and activities of the organization in terms of controlling the departments. These departments are given authority to control their activities. The matrix organizational structure is flexible and can be used for growing businesses.
Different organizational structures are determined by the size and complexity of the organization. Enterprises or small businesses use the Hierarchical structure for being more effective and for making sure that the values of the organizational structure are perpetuated. They are usually efficient as well. They ensure the accountability of the head of the organization.
The matrix organizational structure that Maruti-Suzuki uses is a combination of the matrix and the hierarchical structures. The matrix structure deals with the employees, and the hierarchy structure deals with the supervisors of the employees.
Indian auto maker Maruti-Suzuki Ltd. uses a matrix structure that was first developed by Dr. Stephen P. Covey in the 1980s and is still widely used. The matrix structure was created to help people understand the structure of the organization and understand the way in which the organization works. It is a very flexible organizational structure and is ideal for growing businesses. It is also easier to understand and manage than the matrix structure. The structure includes five levels: people, work, daily routines, structures, and goals.
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