Matrix Organisation

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EXECUTIVE DEVELOPMENT PROGRAMME 2010

TITLE: MANAGEMENT AND ORGANISATIONAL BEHAVIOUR

AUTHOR’S NAME: APPLEBY FADZANAYI KATIYO

Management and Organisational Behaviour Assignment Select an organization of your own choice but make sure it is a Matrix Organisation.Briefly relate its history and the emergence of the Matrix organization. Discuss the benefits and problems perceived by members of the organization in their use of the Matrix Organisation. Evaluate whether the Matrix Organisation is ideal for this organization.

History
Kohler Engineering is a large corporate that was formed in 1996 and is based in Harare .It specializes in the manufacturing and repair of trailers and agricultural implements. It has a huge customer base in Zimbabwe as well as the Southern Africa Region. Some of the industries it serves include, transport, agriculture and mining. It started as small organization with a few equipment and less than ten employees. During those years there were no proper management structure as this organization was being run as a family business. Due to the high quality of their products, the company grew from being a family business to a large corporate. As a result of the expansion, the management engaged the services of a consultant firm to evaluate the organizational structure. Since the company has both functional and project processes the Matrix Organisational Principle was chosen as the most appropriate management structure.

They selected the Matrix Organizational Structure because it allows the company to address multiple business dimensions using multiple command structures. The company is now using a basic Matrix structure with two dimensions i.e. function and product. This type of organizational structure combines the advantages of the pure functional structure and the product organizational structure. The matrix allows managers to harness the services of employees irrespective of their function to work collaboratively on key projects. As per Matrix Organisational chart below, a manager can pool the necessary resource in order to achieve what from the strategic objective, is the overriding priority. It draws on the full potential of the Human Resource.

CEO

ENGINEERING
SALES& MKT
FINANCE
PRODUCTION

PROJECT A

PROJECT B

PROJECT C

Figure 1

Matrix Organisation as it is implemented at Kohler Engineering

Benefits and Problems Perceived by Members of the Organisation.

Although the Matrix Organisational Structure was implemented, like in any other model of organizational design, the Matrix model has its own advantages and disadvantages. In the use of this structure the benefits have been detailed as below. Achievement of coordination necessary to meet customer demands through regular meetings. Employee access to information has become greater than needed, which has guaranteed that they have access to information to the full spectrum of required information. Employee perception of the work environment has greatly improved. Information sharing has also aided in creating an environment that fosters innovation since employees post their ideas and are publicly credited, they have the satisfaction of being recognized for their work. This has resulted in the company being able to meet the demands of their customers. Employees are empowered because they have a sense that they are trusted with the information generated by the firm and they are contributing to the productivity of the firm. Creativity has been fostered because the level of recognition received is a positive reinforcement.

Since human resources can be shared across the products, there is reduction of labour costs. The same employees who perform their normal functional duties are the same that are also transferred to work on projects. Stress is also distributed among the team. There is total labour utilization.

The...
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