Factors Influencing Choice of Matrix Organisational Structure by Large Professional Service Organisations
MATRIX ORGANISATIONAL STRUCTURE
A matrix organisational structure is primarily built around geographical locations with service lines cutting across each location to embrace the best of both the geographic split and the business focus.
At a local level, employees relate with a regional boss and, across geography, they also relate with leaders of the service line they belong to. The regional boss leads a management team who run the local business. This team develop local strategic plans for growing the firms business, manage relations with clients and external parties and manage the risks to the firm in line with firm vision, policy and values.
Services to clients are usually provided by temporary work teams, each comprising personnel with different skills and experience depending on the tasks to be performed on a particular client service. Collaboration is usually required across geographic locations and business units.
FACTORS BEHIND THE CHOICE OF MATRIX STRUCTURE BY SOME LARGE PROFESSIONAL ORGANISATIONS
The design is influenced by a number of factors; however the following factors have had the most significant influence on the matrix structure:
Size of organisation
Type of organisation
Multi-national clients
Strategy of organisation
Nature of tasks
Mobility of employees
Technology
Size of organisation
A matrix structure would be suitable for large professional organisations operating in many countries and employing thousands of people. It enables the organisation to harness the best of the skills of its people worldwide, through collaboration across geographic boundaries and service lines, to provide the best service to its clients.
Type of organisation
A matrix structure facilitates knowledge sharing across geographic boundaries.
With people becoming more and more connected globally, the business of most professional organisations thrives through building and maintenance of a network of relationships. References also play a major part in obtaining new business. A matrix structure arguably facilitates better and faster communication and relationship building than, say flat organisations.
In the dynamic operating environment, the firm requires a structure that enables it to disseminate consistent information about strategic plans and goals to its employees effectively and fast, which is facilitated by matrix organisations better than most structures.
Multinational