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Outline two implications for a business of changing from a functional to a matrix organisation structure - Leaving Cert Business - Question 2 - 2018
Question 2
Outline two implications for a business of changing from a functional to a matrix organisation structure. (i) (ii)
Worked Solution & Example Answer:Outline two implications for a business of changing from a functional to a matrix organisation structure - Leaving Cert Business - Question 2 - 2018
Step 1
(i) Training/Staff Development required
Answer
The transition from a functional to a matrix organization structure often necessitates increased training and staff development. This shift may incur additional costs associated with training for both managers and staff. As the workforce adapts to their new roles, productivity may initially decline. However, in the long term, employees will gain a broader understanding of the organization, enhancing their skills and efficiency.
Step 2
(ii) Staff conflict/power struggles
Answer
Changing to a matrix structure can lead to potential staff conflicts or power struggles. Employees may resist working beyond their original departmental boundaries, preferring to remain within their comfort zones. This resistance may manifest as a reluctance to adapt to the collaborative nature of working across different teams, leading to internal conflicts. The project manager may face challenges managing staff from various departments who may be at odds with each other.