By Jay R. Galbraith
Association constructions don't fail, says Jay Galbraith, yet administration fails at imposing them competently. it's because, he explains, the concept the matrix doesn't paintings nonetheless exists this present day, even between those that should still comprehend higher. however the matrix has turn into an important type of association in ultra-modern enterprise atmosphere. businesses now recognize that in the event that they have a number of product traces, do enterprise in a number of nations, and serve many client segments via numerous channels, there is not any manner they could steer clear of a few form of a matrix constitution and the query so much are asking is "How will we the way to function the matrix effectively?" In Designing Matrix corporations that truly paintings, Galbraith solutions this and different questions as he indicates tips on how to make a matrix paintings successfully.
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Extra info for Designing Matrix Organizations that Actually Work: How IBM, Procter & Gamble and Others Design for Success (Jossey-Bass Business & Management)
Example text
3 shows an example of a simple structure for a sales organization. Sales organizations are usually regionally organized to minimize travel costs and have local salespeople call on local buyers. 3: Regional–National Account Matrix National Account II National Account III Eastern Region Districts 32 DESIGNING MATRIX ORGANIZATIONS THAT ACTUALLY WORK But there are often a few large national, even global, accounts. These customers ask for a single interface and often a single contract from their vendors.
The P&G corporate functions play a much more influential role than the corporate functions play in a holding company. The top structure at P&G can be easily determined from the listing of corporate officers in the company’s annual report. 2: Procter & Gamble Corporate Matrix Structure SIMPLE MATRIX STRUCTURES 29 dotted and solid lines. At least I have never seen one. Nor have I heard people talk about solid or dotted-line reporting. So I asked one of my contacts at P&G about how they handle dotted and solid lines.
I have never seen a change from solid to dotted or vice versa solve the CEO’s problem. It only changes which boss is the one who gets upset. It is clearly a win-lose discussion. I much prefer to use responsibility charts (Chapter Five) and shared goals (Chapter Ten). But many companies still insist on using the dotted and solid line convention. It is a holdover from the original line-and-staff days. These corporate functions were initially called staff roles, which meant that they had no formal authority.