Your Chief Executive Officer has suggested that the numerous problems confronting your organization are as a result of the type of organization structure adopted and has requested for your advice regarding a change to the matrix structure.
Required:
i) Outline FIVE factors to justify the adoption of the matrix organisation structure. (5 marks)
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The Matrix Structure refers to the organizaional arrangement or structure in which individuals from functional areas of the organization are assigned to a specific project or task.
- Knowledge Pool
Matrix organizations are effective at knowledge management since individuals with specialist skills are brought together to undertake specific duties and this leads to lower costs and increased productivity. - Training Grounds
A matrix organizational structure serves as a good training ground for managers since they can acquire skills they do not already possess from project colleagues for their future performance. - Creativity
The pooling of different skills enhances creativity and diversity among the employees. This may lead to higher employee morale and higher productivity. - Information Flow
The matrix structure facilitates effective information flow because employees from different functional areas are brought together, allowing for information to be transmitted more quickly throughout the organization. - Flexibility
The matrix structure enables the organization to share its human resources across different project sites, leading to efficiency, lower costs and increased profitability. - Integration
There is the relative ease of integration of project members back into their previous departments once the project has been completed. - Inter Departmental Co-ordination
With this type of structure, employees are challenged constantly and this results in the development of inter departmental coordination to solve emerging problems. (Any 5)
ii) Explain FIVE challenges associated with matrix organisation structure. (5 marks)
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- Violates Unity of Command
The matrix organization structure violates the basic principle of unity of command since subordinates will have to report to two superiors at the same time and this may create organizational frictions. - Costly
A matrix structure is often more costly to implement since the employees that make up the project team will be drawn from different functional areas and the organization will have to spend much money on communication, etc. - Role Conflict
The personnel who are assigned to a project will still be evaluated by their functional managers who now have little chance of assessing their work, leading to role conflict on the part of subordinates in the performance of their duties. - Inefficiency
The existence of multiple managers and numerous procedures may lead to inefficiency in the management of the organization and therefore lower productivity. - Missed Targets
The matrix structure may result in situations where departments may find it difficult to achieve set targets because employees who are highly efficient would have been drafted into a project team. - Information Logjams
The adoption of a matrix organization structure may lead to the proliferation of information logjams due to the magnitude of work overload on employees. (Any 5)