Matrix organization model refers to a system where there exists a multiple or dual managerial responsibility and accountability. In this model, the employees can report to many managers based on their assigned duties. For the provided case study, Pine Software LLC adopted the matrix organizational model because of the communication difficulties it was experiencing in its expansion process. Due to the strong demand for more products and system integrations, the company was experiencing drawbacks in harmonizing its operation and functional responsibilities. Initially, the company established a new office in Hyderabad, India but the developers in this location incurred communication challenges when determining the right specifications and timelines for the products. Therefore, a matrix organizational model was required to diversify communication platforms so that proper information could be channeled to the developers. By having one manager handle the business issues and the other functional responsibilities, the developers at least had two proper figures to report to. With this knowledge, Pine Software LLC was retaining both its functional and business management capabilities while also benefiting from accurate software specifications and faster product releases.
The matrix organizational model is beneficial since the highly skilled human resources can be shared by different project and functional units. It is also dynamic since it establishes a viable platform in which employees can easily communicate across different managerial boundaries (Baily, 2017). This aspect encourages cohesion and cooperation at work. Although workers may be overworked, this model provides them with a sense of job security which is a key element in employee performance. Through this process, employees are provided a chance to broaden their skills by taking part in different responsibilities assigned.
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In spite of the stellar pros of matrix organization model, it exhibits lots of drawbacks. Considering that employees have to report to two or more managers, they may end up being confused. The opinion differences between the managers can initiate conflicts in the organization. This model is also disadvantageous if the employee responsibilities are not clearly defined. In such cases, the employee may end up being overused which end up jeopardizing the company’s efficiency (Harper, 2015). Even though the rewards of this model are exemplary, Harper (2015) postulates that it is expensive to maintain since the human resources need to be well remunerated for improved performances.
There are various factors that could have aided the company’s success in Illinois and Indiana. The company’s ability to adopt the reduced product cycles of two to three months may have provided it with a competitive edge in the market. In this short product cycles, the company can meet the ever-changing customer demands. Also, the small size of employees may have been vital for the company’s success. Based on the case study, the original employee base was ten, which implies that major tasks and responsibilities were easily coordinated due to their small number. This aspect can also be seen in the company’s ability to comply with the reduced product cycle requirements. For it to achieve this process, it had to cluster its human resource into small groups for the respective product’ niches. The highly skilled human resource could have also contributed to the successes of the company. With a small size of human resources, an organization cannot afford to prosper unless the workers are competent enough to meet their responsibilities (Huczynski, Buchanan & Huczynski, 2013).
Based on the company’s history, the implementation of the matrix organizational model in India may be hampered by low staffing issues. In the case study, it is evident that in the initial implementation of the model, the company required to shoulder huge amounts of work to meet the detailed specifications and timelines of the product releases. With this knowledge, the existing developers may end up being outsourced which negatively implicates the company’s overall performance (Harper, 2015). The initial communication error may still prove costly to the model. In this market, the new consumer demands may require developing new program specifications and timelines which may end up reducing the efficiency of the model. Even though the company boasts of a manager of Indian descent, the workers’ multitasking capabilities may be hampered by limited multicultural expertise.
For the matrix organization model to work, Pine Software company should clearly define what it intends to achieve with the model even before deciding on moving to India. Secondly, it should define the roles and responsibilities of each worker to reduce the communication errors experienced in the past. Ground rules should be established to reduce conflicts in the work environment. This rules can also help to determine the extreme boundaries that the company is allowed to comply with consumer demands. On implementing the model, the company should take its time to understand the market environment then rotate the human resources based on the prevailing conditions. This concept will help it adjust to the new Indian environments.
Based on the previous success of Pine software LLC in Indiana and Illinois, this model is appropriate. In comparison to the functional managerial structure, it enhances more dynamism in the operations of the company (Ibraheem, 2018). Also, by having different managers to report to, the flow of information in the organization is made easy. This aspect is very important in limiting resource wastage since items are produced based on the stipulated specifications. For the case of Pine Software LLC, this model will serve to eradicate the communications difficulties contributed by the Indian culture. Even though some workers may incur challenges to meet the required program requirements, through proper communication, this issue can be mitigated with ease.
Based on the above-stated concepts, I would recommend that the owners of pines software limited consider establishing a relationship building team. This group will help the Indian community to get accustomed to the matrix organizational model. Even though the company has a well-equipped skilled workforce, I would recommend that it recruits other culturally competent workers to supplement the already existing workforce. The large workforce will help the company increase its efficiency at the time when intensive specification models are considered obsolete. Lastly, I would also recommend that the owners adopt a partial investment plan as they monitor the viability of the model. Through this process the major decisions can be made on whether to proceed with the venture or not.
References
Baily, P. (2017). Procurement. In Contracting for Project Management (pp. 105-116). Routledge.
Harper, C. (2015). Organizations: Structures, processes and outcomes . Routledge.
Huczynski, A., Buchanan, D. A., & Huczynski, A. A. (2013). Organizational behaviour (p. 82). London: Pearson.
Ibraheem, A. (2018). Project and functional managers: Coopetition paradox and leadership impact.
