INSIDE THE MATRIX!!!

Presented By: Group 6

CASE SYNOPSIS

Asea Brown Boveri A Switzerland based MNC Formed on January 5, 1988 By merger of Asea AB (Sweden) Brown Bovari Ltd (Switzerland) Initial performance was poor Frequent change in organization structure due to inefficient SHRM policies

Customer Centric Structure

Product Centric Structure

Matrix Structure

CASE SYNOPSIS

BUREAUCRATIC STRUCTURE

MATRIX STRUCTURE

Defined by Weber Standardized structure

Well Defined Roles

Combines the best of Product Structure Function Structure Three types Strong (Product Matrix) Balanced (Function Matrix) Weak (Function Matrix)

Bureaucratic Structure

Well Defined Responsibilities

Meritocracy

Bureaucratic v/s Matrix Structure

MATRIX STRUCTURE

Organization Product Structure

Unit A Product A

XYZ LTD

Unit B Product B

Functional Structure

Sales

Accounts

HR

Sales

Account

HR

Is Matrix structure a full proof and failure resistant structure???

A Failure Proof Structure???

NO

Misaligned goals

Political skills encouraged

Unclear role & responsibility

A Failure Proof Structure???

Admin & managerial overheads

Causes

Ambiguous authority

Lack of accountability

Lack of a matrix guardian

Silo-focused employees

Pre-requisites
Pre-requisites of Matrix Organizational Form: Different leadership and management practice Team building and communication skills Trained employees

Past Examples of Failure

General Motors Corporation 7 year test period of Matrix structure Reverted back to traditional, product oriented organizational structure Reasons: Lack of control over incentives

Dow Chemicals For years Dows managers insisted that part of the credit belonged to its matrix organization Then adopted a flexible customized structure afterwards Reasons: Multiple reporting channels led to confusion and conflict The many bosses created an unwieldy bureaucracy The overlapping responsibilities resulted in turf battles and a lack of accountability

Shell

Adopted in early 60s to manage the organization of its service companies Then they started facing issues and finally dismantled the structure in 1995 Reasons: Lack of coordination amongst the subsidiaries Operating companies felt constrained

THANK YOU!!!
Organizations that acknowledge the experience of older workers, and respect the talents and contribution of new workers, no wonder are often the best place to work!!!