The World Bank faces the challenges of this organizational effectiveness in Global practices
(GP) and Cross-cutting solution Areas. The matrix organizational structure creates barriers in
cross-sectoral and multi-service program where the integration of diverse knowledge and
tools are effective (worldbankgroup.org, 2020). The organization raises the concern to carry
out the knowledge flow where advanced countries share the knowledge with laggard ones
which can improve the production, time and management. The structural divisions of World
Bank will share their knowledge to meet the clients’ needs. The objective of this solution is to
carry out the knowledge flow derived from an energy project in Africa towards the similar
Project in Asia (economicsdiscussion.net, 2020). The matrix structure has a vertical pillar of
knowledge where the members of different geographical location can access the knowledge.
The result of this structural reform seems futile as it consequences the inconsistency of
expenditure against its revenue. For this reason, the organization has planned to reduce
budget of $400 million in the next three years. This decision leads to the reduction of a
number of employments which indirectly affects World Bank’s project of poverty reduction,
quality life and other wellbeing visions. The GPs create barrier of knowledge flow and resist
collaboration as they feel competitive rivalry to each other instead of following a collective’s
vision. The board of directors and the leads of GPs have lack of clarifications about their
roles and also they loss the directions (The World Bank Reorganization 1 – Structure, 2020).
In order to facilitate the flow of global knowledge for better management skills, the
organization needs to adopt a single sector projects overseen by a common reporting
manager. This change solution is equivalent as going back to the traditional hierarchical
structure.
Organization Structure of MDF

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Organization Structure of World Bank

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