Success Factors of a Matrix Structure in a

Date
2011-05-16
Authors
Marsden, Jason
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Abstract
Matrix structures have been one of the most contested organisational designs for the past thirty years. At the same time many companies are also faced with the opportunity and challenge of expanding their operations into emerging markets and trying to structure themselves in the most efficient manner. Creating standards across operations, realising economies of scale and leveraging expertise all have an impact on a company’s decision to adopt the matrix structure. The purpose of the present research is to identify the success factors of a matrix structure in a multinational financial institution in Africa and how such a structure could be improved. Unstructured interviews were conducted at various Standard Bank operations across the African continent and an internal examination of the matrix structure was completed. A comparative analysis was done between the various countries, identifying which success factors were present and whether they were considered to be success factors in the matrix structure. The findings of the research identified nine success factors that are essential in the matrix structure: support from senior management; clear and consistent corporate vision and strategy; employees that are receptive to the vision, goals and values of the organisation; integration of individual thinking and activities into the corporate agenda; developing the abilities, behaviour and performance of individual managers; clearing up and understanding the decision making process; clarifying the roles and responsibilities; alignment of business unit goals and policies and procedures to support the matrix. The research should be of value to Standard Bank and any financial institutions that are debating or have implemented a matrix structure and want to understand what makes it work
Description
MBA - WBS
Keywords
Matrix structures, Financial institutions
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