Q1) Describe the organizational structure at BEC:

Before 2006, Beijing EAP Consulting adopted an organic and informal company structure. It
was a learning-oriented organization with an open culture and flexible structure. There were few
layers of management, decentralized decision-making, little job specialization, no clearly
identified departments or clearly designated responsibilities. There were extensive personal
coordination and open communication among members which strengthened their commitment
towards work.

Q2 What departmentalization approaches does the company use?

Since the restructuring in 2006, BEC adopted a formal Matrix organization structure which was a
combination of functional departmentalization and product groups on a project basis. It increased
efficiency by grouping jobs under the five broad functions (marketing, consulting, training,
research & development and administration) and two project departments. A project
management approach was adopted with the vice-president and CEO leading each project
department.

Q3) What are the Advantage and Disadvantages of matrix structure for BEC?
Advantages

 Conflict: As the project and functional manager share equal authority, there is confusion
over managerial responsibilities. Employees are not sure how to prioritize tasks from
multiple managers creating conflicts in task deadlines.
 Inefficiency: The lack of structural stability and routine functions lead to operational
inefficiencies and increased costs. Multiple managers and contradictory loyalties can also
cause ineffective management.
 Stress: Employees experience stress when there is rapid fluctuation in the structure and
function of the team. Some employees get disturbed by the ambiguity over dual authority
resulting in high worker dissatisfaction and employee turnover.
 Workload: Employees need to meet the demands of more than one manager at a time.
The managers may not know what a certain employee has on his plate which contributes
to heavy workloads.

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Disadvantages
 Specialization: Employees in functional departments could focus on their specialized
fields and grow more familiar with certain work procedures. They can develop and retain
discipline-specific knowledge.
 Time Saving: As employees could spend more time on their specialized fields, a lot of
time can be saved with respect to work assignments and preparation
 Increased coordination: Project managers and other department managers would work out
a plan for each project and then co-conduct the plan. Decisions are accepted faster when
there is buy-in from various departments
 Resource utilization: Resource utilization allows the project managers to focus on
department strengths. They can use staff across the company who specialize in a field
that relates to the project at hand.
 Communication & Flexibility: Department managers could ask project managers to
adjust work procedures based on the actual processes of each department. Resources can
also be shared flexibly among different projects allowing information to travel more
fluidly between different departments.