MGTP102: Individual Essay on Matrix Structure in Management

This essay provides a comprehensive analysis of the matrix organizational structure, examining its impact on organizational performance. It begins by defining the matrix structure and highlighting its prevalence in multinational corporations, emphasizing its ability to address internal and external complexities. The essay then delves into the advantages of the matrix structure, such as improved coordination, resource sharing, employee development, and enhanced communication. However, it also acknowledges the disadvantages, including potential for confusion, increased workload, and higher operational costs. The essay uses examples of companies like Citi Bank and Ford to support its arguments. Ultimately, it concludes that while the matrix structure offers numerous benefits, its effectiveness depends on proper implementation, monitoring, and adaptability to the specific needs of the organization.

Management
Management principles
Student’s name
9/28/2019

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When we talk about the different organization structure, it basically reflects that each structure
has different impact on an organization performance. All this can be achieved, when an
organization adopts or regulate their work with coordination and supervision. Hence, it is seen
that it is one of the most prominent aspect, which is adapted and worked, in every multinational
corporation is matrix-structured framework. Therefore, such structure within the organization
helps the companies to cope up with the internal and external complexities, which hampers the
growth of the organization internationalization and diversification (Bartlett, Christopher &
Ghoshal, 2011)
In earlier year, every organization applied this structure within their organization, which
embraced the best practices to organize the entire system, handle multidivisional MNCs and
generates the long-term profit and enhancement in the performance as capered to those who do
not adopt such organization structure. In deep when we talk about the matrix, organization
structure it is that structure where top management assign work to the supervisor and supervisor
transfers it to lower level of management. Therefore, this aspect highlights the best combination
and features of the project as well as functional structure of the organization. AS it helps in
generating flexible returns, yet it offers the advantage of the task specialization. But now, not
every organization applies Matrix structure as it not benefits every organization. This particular
structure is majorly used by banks and international companies are on border prospective
(Womey, 2012)
Its yes! Every banking organization should follow matrix structure, because it helps the company
to perform better and makes the organization more systematic and generates more effective and
efficient results, work is well divided among people within an organization which helps in
reducing the weaknesses and the future issues. Furthermore, it also helps in sharing the highly
skilled resources between the functional units and projects by making use of open
communication, which helps in transferring knowledge throughout the organization with less
obstruction (Bartlett, Christopher & Ghoshal, 2011)
Other than this, it is also observed that this kind of structure within the organization serves as a
great boon for employees who mainly work to widen their experience and skills sets. Apart from
this, this helps in creating and facilitating the learning environment, which gives employees the
opportunities to grow professionally. Added to this, the functional department leads to the highly

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skilled employees, which are truly available to help the project team if the organization needs it.
Through this, efficiencies are enhanced, team in case always remain loyal to each other because
the structure provides more stable environment where job security is strengthen.
Additionally, to the above aspect, it was also seen that due to the matrix structure organization, it
helps in building relation through or making use of the effective communication. As
departmental walls are torn done and employees after the adoption of this structure move freely
bin between the units, share their valuable thoughts and valued information along the way. This
kind of comfort in the communication frequently leads to the teamwork and typically outcomes
are healthier, are creates stronger organization than before. Another benefit related to it
highlights about the resource sharing in which employees within or under this organization
structure mainly develop their talent with their full potential, and in the other structure cases, the
talent of the employees are kept siloed inside the single department. Hence, if an organization
adopts the matrix structure, it mainly helps the company and employees in removing these silos
and let the business aptitude benefit whichever section or creativity is in need (Eppinger, &
Browning, 2012)
Finally, adoption of matrix organization structure further helps in foster employees development,
these aspects helps them to expose to manifold projects types and ways of thinking. Through
this, employees gain valued knowledge by being employed externally with their traditional limits
and raise their specialized skills set. This aspect not only helps in making employees much b
more valuable to their respective organization and thus, it helps in increasing the overall job
satisfaction of the employees. This aspect not only benefits employees but also helps
organization to generate profitability and productivity in long run (Galbraith, 2012)
Irrespective to all the benefits in concern to Matrix organization, in contradictory terms, this type
of structure opens the lines of communication among the departments, which further makes the
report more confusing. This is because, when employee faces two superiors to report to,
particulars can simply develop, mixed-up and this aspect majorly affects the overall working
within the department and organization. Addition to it, the reports become less vibrant and
flashes may fly in between the departments and project executives, which ultimately leads to the
conflict and hampers the growth and success of the organization in long run. For these issues,
relevant measures are taken into consideration such as by the adoption of the matrix, structure

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within organization generates authority to the particular bosses over others and this still
generates the option of the problem rising with the organization and affects the growth
(Shchemeleva, 2017)
However, the above-mentioned advantages are not at all easy to achieve, sometimes it lead to
certain disenchantment and decline in the use of this matrix. Such as employees who are
experience have extreme workloads, which at the particular time lead to little job pleasure,
exhaustion, and higher stages of employees churn. All this occurs because team memberships are
often tasked by the additional responsibilities with additional, regular workloads. Lastly, banking
and international organization who applies the matrix organizational structure sometimes
represents additional and sometimes important expenses in order to make recollect the high
knowledgeable employees, managers, department heads and project managers. So that they can
maintaining the effective workings conditions , as this aspect benefits the organization a lot but
increases the business payroll balloons which evidently has a major influence on the commercial
bottom line.
So on an entire essay basis, matrix structured organization greatly and truly benefits the banking
company at large but in contradictory form, it also harms an organization such as retail and
manufacturing organization when it is not implemented or monitored correctly within these
business. Such adoption of this aspect, further leads to the betterment of communication aspect
within an organization. It is helpful in sharing resources, resolving communication barriers in
between employees, departments and effectively and efficiently developing employees but at the
same time, over communication aspect added misperception to the reportage system, generates
heavy assignments for workers. Lastly, the operational cost gets higher which affects the bottom
line functions of the organization as well as financial aspects of organization at large (Cingolani,
Iapadre, & Tajoli, 2018)
Nevertheless, when we see in terms of punctuality aspect, this kind of structure is helpful in
saving time and at the same time separates the power or balance the power in between the
managers. Other than this, it is also seen that through an adoption of matrix structure, the
company can easily forms decisions, easy ways to get feedbacks from another organization and
lastly it helps in improving the product and the services, which are offered by the firm in long
run. Examples such as Citi banks and world bank applies this structure within their organization

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which helps them in forming relevant and productive decisions but at the same time makes the
organization to perform in rigid behavior with the strict following of rules, regulation which are
made by the top management (Galbraith, 2012)
On the other hand, when we talk about the controlling aspect, organization follows the well-
structured process in which every employee are set their positions, posts, their workings duties in
order to create or generate an effective returns for the company by doing the same repetitive or
the specific tasks which are assigned to them. Such aspect helps the company to control the
activities, which are performed by the employee, and teams while functioning.
Therefore, such matrix structures which are applied by various organizations till date are
designed to attain the set results. Example such as Ford Company, well-known car
manufacturing company adopts various marketing and sales techniques so as to generate the
clear focus on the set approach. They apply this matrix structure such as to focus on their end
offerings of product and services, stimulates creativity but along with this, it also creates certain
challenges for the firm such as lack of communication and understanding along employees
which further highlights the issues and hampers the growth of the firm at its highest level.
Therefore, on an contract to this, effectiveness of this matrix structure, sometimes is badly
affected, company do faces creative issues, communication issues, definite lines of
communication is followed, increases the management cost and increment in authority and
responsibility of the top management towards the supervisors and the lower lines of management
at large. Thus, influences and majorly impacts the company outcome and performance by
threaten the companies development and lastly leads to an increments in companies competition,
less profits and degraded the companies values in the market at large.

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References
Bartlett, Christopher A., & Ghoshal, Sumantra. (2011) Matrix management: Not a structure, a
frame of mind. Harvard Business Review, 68(4), 138-45.
Cingolani, Iapadre, & Tajoli. (2018) International production networks and the world trade
structure. International Economics, 153, 11-33.
E. V. Shchemeleva. (2017) MODELING OF OPTIMUM COMPANY MANAGEMENT
STRUCTURE. Nauka I Tehnika, (3), 72-77.
Eppinger, S. D., & Browning, T. R. (2012) Design structure matrix methods and applications.
MIT press.
Galbraith, J. R. (2012) The evolution of enterprise organization designs. Journal of Organization
Design, 1(2), 1-13.
Galbraith, J. R. (2012) The future of organization design. Journal of Organization Design, 1(1).
womey, D. (2012) organizational competitiveness: building performance and
learning. Competitiveness Review: An International Business Journal, 12(2), 1-12.