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