Matrix Management

Not a Structure, A Frame of Mind

Group # 29
Aastha Grover | Aditi Gupta | Aniket Kulkarni |Ankur Aggarwal | Chitrank Jain | Tanya Malhotra

Why Matrix Management?

Choice is between Sticking to the knitting and fighting fire with fire. Choice has to be made because - dramatic changes in the global business landscape. Guess what?? Its not an either or case. The answer was Matrix Management - parallel reporting relationships, multiple information channels and overlapping responsibilities. But there are no free lunches. Parallel reporting > Confusion & turf battles, geographical barriers etc. Whats the ideal way a) Focus on managing details i.e. peoples & processes. b) Dont make a plan instead focus on creating a process which comes up with a plan. c) Capture individuals capabilities and thereby motivate organization.

Building an organization
Earlier: - Focus on strategic innovation rather than organizational challenges Matrix Management defined objective in purely structured terms. They must also concern themselves with: Organizational Physiology

System that allows information to flow Shared norms , values and beliefs
Building the organization rather than developing a completely new structure. They: -

Develop clear corporate vision

Manage human resource Integrated Individual thinking

Building a shared Vision

Need for a shared vision: Change in the anatomy must be complemented by change in psychology Mangers of large organizations tend to be bound by their specific responsibilities

3 Cs of an organizations vision
Clarity of expression: Three keys to clarity of expression of vision- simplicity, relevance and reinforcement Simplicity- Simple enough to be accepted organization wide ( Eg: C&C) Relevance- Linking broad objectives to concrete agendas (Eg: Phillips) Reinforcement- continual reinforcement, elaboration and interpretation of the vision (Eg: Panasonic)

Organization must continue to be committed to their core values despite changes in leadership or short term business priorities Continuity of Lack of continuity in core objective strategies leads to confusion (Eg: GE operations in Brazil) purpose:

Consistency of application:

Top management must ensure that everyone in the company shares a common vision Lack of consistency of application in vision leads to chaos among managers often resulting in mutually debilitating agendas (Eg: North American Phillips)

Developing Human Resources

Key to regaining control of Companies that operate in fast changing environment is possible only if the top management has the ability to turn the individual managers into the building blocks of the organization. This can be done if a company invests in developing its human resources and use it as a trump card in times of crisis. Developing Human Resource is a continuous process and following things need to be done for it. 1) Recruitment & Selection 2) Training and Development 3) Career Path Management

The Case of Philips

CASE
Convert managers intellectual understanding of the corporate vision to defend Western electronics against the Japanese into a binding personal commitment

PROBLEMS

Improving coordination without depletion of commitment of national management teams Created a top-level World Policy Council for its video business that included key managers from strategic markets. The reluctance of independent managers to take orders from Dutch units was coopted through this council

NAP refused to share the same vision as its parent company & refused to launch new VCRs Allocation of global responsibilities to units that previously had been purely national in focus. NAP Given lead in the development of projection television & coordination between Asia and North America

SOLUTION

RESUTLTS

Co-option had transformed the defensive, territorial attitude of NAP managers into a more collaborative mind-set. They were making important contributions to global corporate strategy instead of looking for ways to subvert it

Key Learning:

The challenge is not so much to build a matrix structure as it is to create a matrix in the minds of our managers