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 it might be possible to gain some of the benefits of a matrix structure without fully restructuring the organization

It should also be noted that many organisations display combinations of structure. A manufacturing division may be organised along traditional lines whilst the marketing department may be organised along the lines of a matrix organisation.
In reality, organisational structures are often a mix of formal, hierarchical structures and other forms. However, there is the danger that Greg Pye might end up with an inappropriate and clumsy construct. The benefits of both could be achieved through a hybrid structure.
The production department, with its need for uniformity and certainty could remain as a traditional hierarchical structure. The marketing department requires less formality and exists in a more uncertain environment, thus a matrix organisation, based in teams and products, might be more appropriate.
Overall however, a team based, product driven approach could be developed



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