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Outline two implications for a business of changing from a functional to a matrix organisation structure: (i) (ii) - 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: (i) (ii) - Leaving Cert Business - Question 2 - 2018
Step 1
Training/Staff Development required
Answer
Transitioning to a matrix structure often necessitates a change in skills and knowledge. Training costs for managers and staff may increase due to the time and resources required for development. In the short term, productivity may decline as employees adapt to their new roles. However, this investment can lead to a more competent workforce with a better understanding of how the entire business operates, resulting in the development of multi-skilled staff.
Step 2
Duplication of duties may exist across several teams
Answer
In a matrix structure, teams often have overlapping roles, such as marketing and production managers. This can lead to duplication of duties, which necessitates effective communication between managers to avoid conflicting approaches to projects. Clear communication is essential to prevent confusion and ensure that all teams work collaboratively towards common objectives.