Greg Pye is the chief executive of a medium sized company that traditionally has been organized hierarchically according to function. After attending a management seminar, he decided to encourage inter-functional departmental co-operation by implementing a matrix structure in the organization. Greg agreed that a matrix organization and cross-functional team working would provide flexibility and enhanced performance to the organization. However, the company secretary drew Greg’s attention to some potential drawbacks. These include the possibility that people won’t know who they are meant to be reporting to, supervision will be difficult for their line manager who thinks they are working in their teams and team leaders will have no real authority over the team members. After speaking to the company secretary, Greg began to have second thoughts about the matrix structure. Greg decides to ask for a more considered view of restructuring the company. Required: Greg Pye has asked you to explain: How Greg and his management team can address the concerns expressed by the company secretary

The concern that individuals and managers may not adapt to a more flexible structure may be addressed by:
o team development and building
o balancing the demands of uniformity and diversity inherent in the matrix structure.
o creating appropriate reporting systems

o creating product teams and customer groups
o addressing problems of trust and confidence that will arise from the removal of role certainty in the traditional organisation.
o a system of performance evaluation
o ensuring clear communication paths and patterns



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