See the following defining a matrix organization.
You have been hired as the marketing strategist for the beverage unit of Conglom Foods. Conglom operates in a matrix structure; people from "support" divisions, such as marketing, work within product units (e.g., beverages). There are marketing strategists in other Conglom units; you will consult with them on a semi-regular basis. (Pls. see the attached file for an explanation of matrix organizational structures).
Conglom currently produces carbonated and non-carbonated cocktail mixers, such as tonic water, Pina Colada mix, and grenadine syrup. Sales have stagnated, and you believe it's because of the product's limited market. You also see an opportunity for Conglom to expand into new markets.
The beverage unit management is intrigued by the idea of developing a new product for a new target market, but they don't know how to get started. Pls. answer the following questions:
1. Write how you, a marketing person, can help with the product development concerning the followings:
a) the role of marketing
b) marketing's involvement in product identification and promotion
2. You have an initial meeting with the beverage unit's product and operations managers. Your goals are to:
a) discuss how and why environmental factors are affecting sales.
b) introduce the idea of developing and marketing a new product, possibly to a new target market.
Matrix Organization: Define Matrix Types
In a matrix organization, two different structures overlap on the same hierarchical level, that is to say, a vertical structure is combined with a horizontal structure. With relation to Organizational Management, the points where the two structures intersect can represent the positions, which are responsible for carrying out the tasks in both the vertical and horizontal structures.
In this step, you define matrix types, which, depending on the object types you have chosen to display in the two dimensions, describe a particular manifestation of your matrix organization.
First, you specify the start objects that will be arranged in the horizontal and vertical dimensions of your matrix organization.
By entering an evaluation path for both dimensions ("SBESX", for example), you determine which additional object types are to be displayed in the matrix view and which object structures are to be displayed in the projection view. Finally, you specify the type of relationship (matrix relationship) between the objects and the two dimensions.
Example
The following example explains the impact of a matrix organization on business:
• Example: Division matrix organization
An enterprise in the consumer industry with a few hundred employees is organized in a functional hierarchy. As time has passes, three product groups or divisions form: the stereo department, the household appliances department and the bicycle department.
As a base, the division matrix organization uses a division organization that is overlapped by an organization based on functional hierarchy with central departments. The division leaders are responsible for their divisions, which are profit centers and can be considered as financially but not legally independent enterprises.
Primary functions of the production and sales processes such as marketing and development as well as secondary functions, such as financial accounting and payroll are integrated with these divisions but also happen in central departments.
This leads to a double subordination of employees. The head of the payroll department, for example, is subordinate to his division leader. He also reports according to the guidelines of the payroll department.
The matrix allows transparency in the enterprise constellations described above and guarantees that you can display and evaluate the employees that report to two different people (and the positions, which they occupy), their functional classification on the one hand, and the division they belong to on the other.
In the matrix view, the central departments (Object type="O") are arranged as organizational units in the vertical dimension, dimension 1, and as divisions (Object type="IL") in the horizontal dimension, dimension 2. Assignments are then represented by the points at which the two dimensions intersect; the relationship period is also displayed here.
The matrix relationship is:
Employee (position) "belongs to" division X (A222), or
Division X "includes SAP objects" (B 222).
To display the entire structure of dimension 1 (central area) (including the positions relevant for the matrix relationships), you must have entered the evaluation path "SBESX" in the previous example.
Activities:
1. Choose 'New entries'.
The 'new entries: Added details' screen appears.
2. Enter an abbreviation of up to 10 characters and a description of up to 25 lines for the new matrix type. You may use the entries "division" and "division organization" in the above example.
3. Enter a description of the dimension of up to 25 lines and select an object type (in the above example "central area" and "division", as well as object types "O" and "IL")
4. By entering an evaluation path (in example: "SBESX"), you determine which structure in the dimension and in the projection view can be displayed. Entering an evaluation path is unnecessary if the objects in a dimension (division, for example) do not form a structure.
5. Select the name of the matrix relationship which is to apply to the relationship between objects in the two dimensions (A/B222, see above).
Further notes:
You can enter the matrix type you have created in this step when you go in to matrix maintenance. The parameters will be transferred into the subsequent dialog box. Simply enter the start objects of the two dimensions.