Matrix Structure

1
Matrix Structure
Employees are assigned to a specific project
team and have a permanent functional unit
President
Project A Manager
Project B Manager
Project C Manager
2
Matrix Structure - Why?

• To get the advantages of two structures (e.g.,
  Functional for high specialization and Product
  for decentralized decision making)
• Often used with sophisticated technology,
  fast-changing environment
• Geographic and Product often combined in
  Multi-national firms

3
Disadvantages of Matrix

• Many meetings to coordinate activities
• High conflict between two sides of matrix
• Need for extensive human relations training

4
How do we coordinate across functions?

• Within a Functional Structure
• -Liaisons, Integrators
• -Temporary Task Forces
• -Permanent Committees
• OR
• Use a structure with inherent cross-
• functional contact
• -Divisional
• -Matrix
• -Teams

5
Organizational (Corporate) Culture

• Key values, beliefs, understandings, and norms
  shared by organization members.

6
Cultural indicators that can be seen at the
surface level
Visible
Artifacts such as stories, symbols, slogans,
ceremonies
Invisible
Employees are family Customer service at
any cost Quality is essential Sales
targets are important
Deeper values and shared understandings held by
organization members.
7
What Cultures Do

• Distinguish organization from others
• Generate commitment to the organization
• Guide employee behaviors

8
Types of Cultures

• There are many classification systems, including
  those based on
• Risk Tolerance
• Communication Patterns
• Types of Control
• Coordination Techniques
• Reward Systems

9
Sources of Culture

• Founder
• Change Agents
• Experience
• National, Regional Culture