OB lecture 3 team and matrix structure

Team structure is used as a complement to Functional structure A Matrix structure can be considered a special form of Team structure Advantages of a team dynamic and adaptive Can we perform a surgery using functional structure? Especially good for innovative or knowledge work It is the design principle for top management and innovative work Limitations of a team Need Clear Objectives Constantly need a mission or objectives, or the team disband Psychological Demand Demand continuous attention to its management, relationships of member Small Size The greatest limitation team is its size, 7 to 15 – size of team sports – soccer, criket, baseball

Team and Matrix Structure

Lecture 3

Unit 3 Organizations and Behaviour

Functional Structure is poor in

communications and decision making To

overcome these limitations, we can add

1 Team, or Matrix Structure

2 Divisional Structure

onto or into a functional structure

iPhone is quickly capturing the smartphone market.

Samsung needs to quickly come out a newmodel as goods as iPhone, if not better andcheaper

Samsung Product Development

Samsung new product must meet

Time to market

Design for manufacturing

Early Supplier Involvement (ESI)

As such, product development must work

simultaneously with marketing,

purchasing, manufacturing, finance…

A Matrix Structure Is Used

Sales and Marketing Manufacturing

Purchasing Finance

See also Page 70 Text book

Team as a complement to Functional Structure Product

Development

Team structure is used as a complement to Functional structure

A Matrix structure can be considered a

special form of Team structure

History of Teams

Humans have used team for hundreds of thousands of years

In hunting !

What differential Team structure from

simple structure is role.

Classical Examples of Teams…

A Team consists of two or more persons

Elements of a Team

A Team must have

1.Objectives, e.g a mission: to win the Word Cup

2 Roles or complementary skills

3 Performance standard

Group

In the absence of these elements, two or more persons together can not be called a

team, but possibly a group.

e.g A tour group to Japan.

There is a common objective to enjoy

visiting Japan, but there are no roles or standards

Permanent &Temporary Team

Permanent Team

Account Management Team at Leo Burnett

advertising company, 9 th world’s largest

Account Manager Interpersonal, communication

Leadership in Team

Leadership in a team may be permanent or

shifting

1 Permanent

e.g Management team

or a doctor or nurse patient care

2 Shifting with each phase.

In soccer, the player in possess of the ball is the leader, not the captain, e.g David Beckham

Responsibility and Accountability in Team

The team as a whole is response for the task Individual contributes his/her particular

skills and knowledge

But every individual is always responsible

for the output and performance of the

whole team

What is Responsibility and

Do Members Need to Know Each Other Well?

Team member need not know each other

well to perform as a team

e.g A Filming team for a movie

Members may meet each other for the

first time

Advantages of Team Structure

- dynamic and adaptive

Can we perform a surgery using functional structure?

- Especially good for innovative or

knowledge work

It is the design principle for top

management and innovative work

Why Team Can Work So Well

Organizing Work, physical as well as

mental, can be

organized in 3 ways:

1.Organized by each stages in the process

2.Work moves where the skills and tools are for each of the steps (Functional Structure)3.Skills and tools join together and move to

the work – Team Structure !

The top management

team of an organization

should be a team

structure

Peter F Drucker The Inventor of “Management’

Limitation/Disadvantages of Team

• Need Clear Objectives

Constantly need a mission or objectives, or the

Additional Problems of Matrix Structure

Sales and Marketing Manufacturing

Purchasing Finance

In "Administration Industrielle

et Générale“ (1915), Henri Fayol not

only designed and defined functional

structure, he laid down 16 principles of

management - Classical Management

Theory that we will discussed under

Outcome 2 (still Assignment 1) – Week 5

Henri Fayol Administration Industrielle et Générale”, 1915

Functional Structure Classical Management Theory

Classical Management Theory

16 Principles by Henri Fayol, See Page 34 of text book

1 Division of Labor

2 Principle of Authority and Responsibility

3 Principle of Scalar Chain of Command

4 Unity of Command - one boss

5 Principle of Subordination of individual interests to the

general interest

6 Order People and materials should be in the right place at

the right time.

7 Equity Managers should be kind and fair to their

subordinates.

8 Stability of tenure of personnel

9 Initiative Employees who are allowed to originate and

carry out plans will exert high levels of effort.

10 Esprit de corps Promoting team spirit will build harmony

and unity within the organisation

11 …

Principle of Unity of Command

A person should report to only one boss

Principle of Scalar Chain of Command

Authority passes down the hierarchy

Subordinates reports up the hierarchy

Ei Ei Htwee

Finance Manager

Office Manager

Manual

Computerised

Accounts

Purchasing Manager

Order Preparation

Supplier Liaison

Sales Manager

Sales Executive 1

Sales Executive 2

Sales Executive 3

Problems of Matrix Structure

Matrix Structure violates two principles in Classical Management theory: -

1 Principle of Unity of Command

2 Principle of Scalar Chain of Command

As such, matrix structure is difficult to

manage, and place psychological demand

on its members