Designing Matrix Organizations That Work: Lessons from the P&G Case

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Designing matrix organizations that work: Lessons from the P&G case

Ronald Jean Degen
International School of Management Paris

2009

Working paper nº 33/2009

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globADVANTAGE Center of Research in International Business & Strategy

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WORKING PAPER Nº 33/2009 July 2009

Com o apoio da UNISUL Business School

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DESIGNING MATRIX ORGANIZATIONS THAT WORK
LESSONS FROM THE P&G CASE

Ronald Jean Degen Ph.D. Candidate at the International School of Management Paris Vice Chairman of Masisa Chile Address: E-mail: [e-mail] Phone: [phone] Cabanha Orgânica Lomas Negras Ltda. Caixa Postal 95 Campo Alegre, SC 89294-000 Brasil

Ronald Jean Degen is in the Ph.D. Program of the International School of Management in Paris, and the Vice Chairman of Masisa in Chile. . He was a Professor at the Getúlio Vargas Graduate Business School of São Paulo where he pioneered the introduction of teaching entrepreneurship in 1980 and wrote the first textbook in Portuguese on entrepreneurship published in 1989 by McGraw-Hill. He just published a new textbook on entrepreneurship that was published in 2009 by Pearson Education.

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Designing matrix organizations that work: Lessons from the P&G case ABSTRACT The purpose of this paper is to illustrate why companies adopted the matrix, what problems they had, the solutions for these problems based on Galbraith (2009) and other authors like Davis & Lawrence (1977), and the state of the art of matrix structure design today like the P&G front-back hybrid matrix organization. The matrix organization concept emerged from the US aerospace industry in the 1960s and was adopted by many companies in the early 1970s. In the late 1970s and early 1980s many companies were experiencing trouble

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