What is a matrix organization? Describe giving examples

Question

What will be an ideal response?

Answer 1

In the fully developed large-scale global company, product or business, function, area, and customer know-how are simultaneously focused on the organization's worldwide marketing objectives. This type of total competence is a matrix organization. Management's task in the matrix organization is to achieve an organizational balance that brings together different perspectives and skills to accomplish the organization's objectives. In 1998, both Gillette and Ericsson announced plans to reorganize into matrix organizations. Ericsson's matrix is focused on three customer segments: network operators, private consumers, and commercial enterprises. Gillette's new structure separates product-line management from geographical sales and marketing responsibility. Likewise, Boeing has reorganized its commercial transport design and manufacturing engineers into a matrix organization. This is built around five platform or aircraft model-specific groups. The new design is expected to lower costs and quicken updates and problem solving. It will also unite essential design, engineering, and manufacturing processes between Boeing's commercial transport factories and component plants, enhancing product consistency. The matrix form of organization is well-suited to global companies because it can be used to establish a multiple-command structure that gives equal emphasis to functional and geographical departments. Four considerations are suggested regarding the matrix organizational design. First, the matrix is appropriate when the market is demanding and dynamic. Second, employees must accept higher levels of ambiguity and understand that policy manuals cannot cover every eventuality. Third, in country markets where the command-and-control model persists, it is best to overlay matrices on only small portions of the workforce. Finally, management must be able to clearly state what each axis of the matrix can and cannot do.