Posted at 11.29.2018
The reason we choose the matrix company is because we realize this composition will be very important in the foreseeable future. Matrix company is the best-know software of project management, a job structure imposed on top of a functional framework. Matrix organizations advanced to capitalize on the advantages of project and matrix structure while lessening their disadvantages. A significant facet of the matrix structure is each person work on the project and has two superiors that happen to be project supervisor and functional supervisor. The project managers' report to a top-level manager and this will help a great deal in decision making. Example users of matrix structure include bank, insurance, companies, chemical manufactures and universities.
The matrix corporation combines the best feature of the job and functional structure. It is adaptable, yet it includes the features of task specialty area. Matrix structure is well known for its capacity to facilitate high-quality and progressive solutions to difficult technical problems. The job structure also offers people a amount of freedom that increases their development as professionals. Also of notice is the fact that the matrix organization offers ample chance of job rotation on many tasks. So should a business make use of the matrix framework in order to possess better management?
The answer is yes. Why? Because in this modern life the matrix composition can help company perform better. Matrix framework will make the business organization become more systematic and better.
The matrix framework will make the corporation become more organized. In matrix company there have functional administrator and product managers. The work will be divided and job can be carried out easily. This will bring benefit to the company and matrix group will decrease the weakness of the company. Every staff in the business that uses the matrix structure has their own work that need to be achieved. So the job is divided and can be done easily plus more organized. (Andrew 1993)
Functional professionals are in charge of specialized resources such as creation, quality control, inventories, scheduling and selling. They will know in doing they own job and the task can be done with the reliable outcome. Universities often use matrix firm to establishing the programs, for example industry training seminars and adult education. (Andrew 1993)
Product managers in charge of a number of products so they may have their own specific jobs to be done. Project professionals usually will report to top level managers. The types of users of matrix composition include banks, insurance companies and universities. (Andrew 1993)
For example, Champion products Inc, creating the split marketing section. Furthermore, this enables managers and employees more familiar and specific with the marketplace. (Andrew 1993)
However, the matrix structure also brings risk for the main company. Inside the matrix management framework, when one company handled loss, it will influence others. The main company facilitates it by more income, the marketplace budget will be decreases, which will be relative to the introduction of new product. Finally, the sales and revenue will be inspired.
Although the matrix management framework is easy to create and appears to have advantages, it could be difficult to implement. Problems can come up over shared responsibility, the use of resources in keeping and the question of priorities. ( Hannagan 2002)
In a matrix management company, the majority of the info and information are distributed, and it is a risk of duplication. Some managers may be unhappy about the wages or the work opportunity, when other company provide better incentive, those managers will leave and take many useful resource, such as some valuable employees and customers' information. For the primary company, the loss is more than what we can imaginable.
Those problems I mentioned have been around in IBM and Shell Essential oil organizations. In 1980s, the Shell Olive oil Company applied the matrix composition, and it has been inspired in sales because of communication problems.
Matrix structure has those problems, nevertheless, it is also a good impact, which allowing groups to talk about information across process boundaries and allowing managers and staff to talk about skills and experience so that increase entire team's productivity.
Matrix structure will give or open more opportunities for job. The company which uses matrix composition will work with many workers or employees. This will give more opportunity job to people to get employment, looked after lower unemployment rate in the particular country. Many jobs imply needs more employees which means this will give or offer the ability job to the people. (Andrew 1993) For instance, if the business like mustang or Taurus comes out with new job or models, they will need employees such as engineering to utilize them. (Kinichi & Williams 2003)
People in particular country are certain to get more knowledge about international management. Employees maybe will teach in other country to find out more about the company objective. It'll add the employees' knowledge. For example, the US organization, Bow Substance. In 1970 many companies moved away from using the matrix structure but Bow believes this structure provides advantages and can give good performance among employees. ( Paul, aleny 1993)
Moreover matrix framework will give local people specifically country to get training, enhancing their skills and also can learn the skill of different management from different country.
Some problem about cost and communication appeared in matrix structure, Using matrix composition will need more cost and much more discussion than action. It's uncountable that using matrix management structure need high cost in a brief term period. When a company would like to grow business in other country, it must prepare capital for building new manufacturer, and hiring employees. For those companies that they don't have enough money for high cost and cover the loss initially is risky.
Another problem is that too much democracy can result in insufficient action ( IreLand 2007). In the business, the matrix management use much time to discuss the methods in producing and increasing sales. However, at the end of speaking about, just bit activities can be achieved, and sometimes quite decision for major project is also overlooked. Furthermore, the employees' lazy feelings is easily appearing in matrix framework companies.
To some extent, matrix structure has encouraged electricity struggles. The managers have ordered their employees help him apply the energy, and used had ways and methods, these effect other department professionals, even though have an awful impact on the company.
For example, Ford Company has a challenge in finance. As the high management cost and expenditures, it reduced the profit directly. Some situations have been occurred in IBM, COCA-COLA, and Toyota Company.
Matrix structure will save management time. Every country gets the branches that handle about the merchandise in a particular country, so it is totally helps you to save the management time. In matrix structure managers have three main major assignments. The task is divided between practical and product professionals. So they have got the own task to be done. It's will save time and also separates the power or balance the power between the managers. (Jerald Greenbery 1999) Efficient and product managers have specific jobs to be achieved in this structure the worker also must article their task with their manager so it make fair and balance forces between the managers.
Moreover by using matrix structure the main company easy to make decision. Besides that they easy to get responses from other company under them and it'll assist in improving their product and services. TRW systems group, Liberty Mutual Insurance and Citibank is some of the company that adopts matrix composition. This can help the business in doing your choice making. (Jerald Greenbery 1999)
On the other palm, the main company also easily to control the business under them and change the marketing strategy. In this framework every employee acquired they own responsibilities and all work hard to improve the return for the business with doing their specific process. Furthermore they can react to the changing extremely fast and finding the best environment. Yet, in controlling, matrix composition maybe may cause stressful among managers. But if looking for the power that the business will get advantage in future, Matrix structure totally useful. (Jerald Greenbery 1999)
Dow Chemical, it thinks that matrix composition will improve their management when other companies stop using the composition, Bow still continue utilizing it because he think that matrix structure will give improvement and make him easily to control the employees.
Matrix composition is a permanent organization designed to achieve specific results by using groups of specialists from different efficient area in the business. For instance, Ford UK produces motor cars aimed specifically at the UK and European market segments and adapts its marketing and sales ways to the requirements of the markets. UK can be cured as a distinct market requiring clear focus on the method of it. There are several advantages by using the matrix organizations such as focus on end product, stimulus creativeness, provides obstacles and enhances communication and understanding (Mondy & Premeaux 1992)
On the contrast, matrix structure has creative the issues in communication, management cost, and responsibility. These will influence company's performance even though to be always a risk for a company's development and increase company's competition.
However, in a long term, if the business can improve their management and use matrix composition effectively, it'll show that matrix framework is very necessary and important strategy for those companies which aim to be the most successful survivors in the competitive market. In USA, 1 / 3 of most successful companies have used matrix composition, and it illustrates the way the matrix framework can help companies close to the famous and success.