Challenges and Strategies of Matrix Organizations: Top-Level and Mid-Level Managers’ Perspectives Thomas Sy, College of Business Administration, California State University, Long Beach; Laura Sue D’Annunzio, A.T. Kearney Inc. U sing surveys, inter- views, and workshops with 294 toplevel and mid-level managers from seven major multinational corporations in six industries, we identified the top five contemporary challenges of the matrix organizational form: (1) misaligned goals, (2) unclear roles and responsibilities, (3) ambiguous authority, (4) lack of a matrix guardian, and (5) silo-focused employees. We also provide managers with the best practices that will improve their matrix organizations. Interest in …show more content…
The matrix also can require more managerial and administrative support at a time when companies appear to be cutting back. Although all matrix forms have inherent flaws, CEOs adopt the matrix because they believe the strengths outweigh the flaws. Matrix organizations are adopted for four primary reasons (Burns & Wholey, EXHIBIT 2 Matrix Strengths and Weaknesses STRENGTHS businesses as evidenced by its proliferation in a variety of industries, such as aerospace, automotive, banking, chemical, communications, computer, defense, electronics, financial, energy (Davis & Lawrence, 1977; Galbraith, 2000). The continued proliferation associated with the use of the matrix confirms a need for information on the challenges and best practices. In this article, we report the findings of our research on contemporary issues of the matrix. To date, few studies have examined the human side of the matrix (some exceptions are Bartlett & Ghoshal, 1990; Lawrence, et al., 1977). Most topics on the matrix focus on its structure and its variant forms (e.g., Goold & Campbell, 2002), rather than the human side—issues concerned with managing and operating in the matrix. In this study, we focused on the human side of the matrix as the findings provide actionable steps that managers can implement to improve the functioning of their organizations. We begin with a brief overview of the matrix. We then identify the top five challenges
Management differs today than it did in the past. In the past, managers were considered “bosses” and their job mostly consisted of giving employees orders, monitoring performance and reprimanding unproductive behavior and misconduct. Many managers still manage employees in such fashion; however, some managers now tend to be more proactive and have changed managerial functions for the betterment of company operations and performance to accomplish organizational goals. Effective management for company success now entails guiding, training, supporting, motivating and coaching employees verses just demanding what
As already discussed in Section 1, business productivity and change cannot occur without effecting people’s psychology to effect change. I initially felt that supervision would be fundamental to addressing and identify issues to allow reflection to plan a way forward to address issues, such as, performance management, productivity, effectiveness and understanding the views of the individuals to effect and improve individuals and team goals, and linking this to the business plan. This approach I
The company has hired three (3) new managers with expertise in larger motor engines, ten (10) staff members to assist on the factory line producing the engine as well as new marketing staff to create the best plan for execution of sale. The current staff will continue to make and monitor the medium size motors with a small amount of cross over. The additional staff with work primarily on the new larger motor project with career ending goals to continue with the organization for a long time to come. This increase and structure is the best of two worlds according to Project Management (Kerzner, 2013) “the matrix structure eliminate almost all of the disadvantages of the traditional
Improve our clients’ ability to manage their organizations through education, training, research, problem solving, and sharing of resources
We can safely state that no single theory of management is universally accepted today. To provide a useful historical perspective that will guide our study of modern management, we shall discuss five different approaches to management : (1) the universal process approach, (2) the operational approach, (3) the behavioral approach, (4) the systems approach, and (5) the contingency approach. Understanding these general approaches to the theory and practice of management can help you appreciate how management has evolved, where it is today, and where it appears to be headed. Each of the five approaches to management represents a different conceptual framework for better understanding the practice of management.
* What organizational structure, management processes, and philosophy will foster superior performance from the company’s business units?
Set and analyze the policies and procedures to structure a management framework, which support efficient production. In order to create an effective organization, I arrange all personnel into functional groups, such as Finance, Purchasing, Marketing, Sales and Human Resources. Align each group’s performance goals with the company’s strategic objectives.
Management differs today than it did in the past. In the past, managers were considered “bosses” and their job mostly consisted of giving employees orders, monitoring performance and reprimanding unproductive behavior and misconduct. Many managers still manage employees in such fashion; however, some managers now tend to be more proactive and have changed managerial functions for the betterment of company operations and performance to accomplish organizational goals. Effective management for company success now entails guiding, training, supporting, motivating and coaching employees verses
The aforementioned article expresses the importance of a solid corporate climate, moreover, the value of a proficient organizational structure. The principle that Ms. Gillian Tett expounded upon in the text, “The Silo Effect” was to exemplify the negativity surrounding “Silos” (Broughton, 2015). At first, I had no idea what the term silo embodied, so I was intrigued to look up the expression. The term denotes a mediocre organizational structure, due to a breakdown of communications (Bianca). Thus, the author expressed her reasons why silos were unproductive in the corporate environment. The main principle that she described was that, the organization doesn’t run like a well-oiled machine, due to non-communication, compartmentalization attitudes,
As of current, Peanutty is having trouble meeting the demands of customers because of redirection of production by Mr. Carmelo. Mr. Carmelo is making all of the executive decisions on his own, and the employees are not pleased with this kind of structure. If the employees were able to operate within a matrix structure, they could work together with Mr. Carmelo to capitalize off of the business, by finding the best ways to do things within the business. Mr. Carmelo has proven to be very bland about his vision, and the direction that he would like for the company to go in. Without employees or Mr. Carmelo’s assistant being aware of these things, improvement is nearly impossible.
Although there are signs that the company has a matrix structure in place, they do not follow a programme management approach and numerous failures within the structure exist. Their approach to management is still that of a traditional organisational approach, which tends management to lack both strategic purpose and customer focus.
Over the past hundred years management has continuously been evolving. There have been a wide range of approaches in how to deal with management or better yet how to improve management functions in our ever changing environment. From as early as 1100 B.C managers have been struggling with the same issues and problems that manager's face today. Modern managers use many of the practices, principles, and techniques developed from earlier concepts and experiences.
Technology and globalization have created new markets as well as enabling more competition in the marketplace, thereby creating a complex world for companies (Morieux, 2011). More competition and the ever changing marketplace, means it becomes harder everyday to keep up with changes and customer needs. The more complex an industry becomes, the more changes take place, meaning the more complex an organization can become. According to Morieux (2011), today’s companies set themsekves six times as many performance requirements as they did in 1955. Additionally, Morieux (2011) points out in the same time period, company leaders set four to seven performance imperatives, where today they commit to 25 to 40. Organizations need to satisify their customers who desire low cost but high quality. Companies need to be innovative yet efficient. To manage these conflicting goals, managers redesign company structure, performance measures, and incentives so as to help alogn employees behavior with external challenges (Morieux, 2011). This, as described by Morieux (2011), means more layers get added and more procedures laid out; companies then try to smooth these changes with positive emotions to create a better workplace.
In order for an organization to have effective management, it must have a well-designed management process (Koontz & Weihrich, 1990).
In today’s competitive landscape, organizations must utilize every resource to its fullest in order to achieve profitability. Peter F. Drucker, who is known as “the founding father of the discipline of management”, informs us that employees are assets, which should be treated as a company’s most valuable resource. The key players involved in utilizing this valuable resource are the managers of a company. Managers have a vital role in a company and the effort they put forth into their tasks and responsibilities will directly affect the success of a company. In Drucker’s book Management: Tasks, Responsibilities, Practices (Revised Edition), he explains the role of a company’s management team and the secrets to becoming a great manager.