Questions:

1. Based on the information available in the case, sketch a picture of the original structure within an
Abraham’s store and the store managers’ relationship with district specialist managers. What type
of structure is this? Explain.

Exhibit 1. Current structure of Abraham’s Grocery Store

The diagram above shows the functional structure. In a functional structure, employees are
grouped into departments based on similar skills, responsibilities, and resource usage. Specialization is
based on function. As indicated by the case, the store specializes in excellent meat and produce. That's why
the meat manager and the vegetable manager were separated. The functional structure can be seen in the
lower levels of the diagram, with departments grouped according to their common outputs. Coordination
and communication are usually only within the same department. Therefore, one of the problems that
management encounters is lack of communication between functional departments. The high turnover of
store managers is due to their inability to manage the meat and vegetable departments where their
responsibilities are so well followed.
 2. Based on the information available in the case, sketch a picture of the consultant’s recommended
structure within the store and the relationship of store department managers with district
specialist managers. What type of structure is this? Explain.

Exhibit 2. Consultant’s recommended structure of Abraham’s Grocery Store

The revised organizational structure shows a matrix approach. The matrix approach uses both
functional and departmental chains of command simultaneously in the same part of the organization. This
construction brings balance and flexibility to both traditional constructions, enhancing the balance of
strengths and weaknesses.

A matrix approach was recommended by consultants because it can be implemented quickly to allow
for rapid response to cross-departmental requirements without disrupting the existing functional
organizational structure. Anecdotally, we can see that the meat department, grocery department, and
vegetable department all report to the store manager. The head of the meat department then has a broken
relationship with the district meat specialist. On the other hand, the fruit and vegetable department
manager have a dashed relationship with the district fruit and vegetable manager professional. From this
structure, the employee reports to her two managers at the same time. The first chief oversees her chain of
command for both products and features, and she's also the feature manager. This is where knowledge,
skills and expertise are shared between functional departments and the organization.
 3. What are some of the advantages and disadvantages you see for the two types of structures?
Which structure do you think will work best for Abraham’s? Why?

Both functional and matrix organizational structures have advantages and disadvantages. Here are the
pros and cons.

Functional structure advantages:

• Maximize Functional Performance – Departments are managed by supervisors with deep

knowledge and experience. Therefore, they can manage their department efficiently and
effectively.

• Specialist training – Employees are divided according to their areas of expertise. No double
work.

• Centralized communication - All decisions are made by top management. This will provide
consistent guidance to all affected employees.
Functional structure disadvantages:

• Restrictive and Slow Responsive – The department is unable to respond to rapid economic
changes driven by customer needs, product requirements, or technological advances.

• Poor Communication and Coordination - Each department has its own specialties and
tends to ignore the needs and problems of other departments. They lack a broad
awareness or understanding of how important each department is to the company's goals.
Cooperation is dangerous.

• Low employee morale – Employees find repetitive tasks boring, which can lead to
decreased performance and productivity.
Matrix structure advantages:
• Efficient use of human resources – Highly qualified resources can be shared between
functional units and projects.
• Faster Information Flow – Facilitates better communication, limits boundaries, and enables
better cross-departmental collaboration.
• Train Talented Employees – Great benefits for employees looking to expand their
experience and skills. We provide a good environment for employees who want to learn
and grow professionally.
Matrix structure disadvantages:
• Redundant Chains of Command – Confusion occurs when instructions are not clearly given
or when there are conflicting instructions from two managers with equal authority and
authority.
• Create Conflicts – Conflicts can arise between the functional manager and her manager of
cross-functional teams, each forced to compete for each team's member's time.
• Expensive to maintain – adding senior staff comes at a financial penalty. Abraham has to
pay another manager because the store manager will no longer be the manager of the
grocery store.
 The most suitable structure is Abraham's Grocery's matrix approach. It has the best of
both worlds. At the same time, this structure reduces the level of competition without changing
the quality of the product results. This ensures that store operations run as smoothly as possible as
there is coordination between the three departments. All stakeholders interact daily to achieve
functional and project goals.