Article Abstract:
Does matrix management stifle or foster the development of new products? The arguments in favor and against matrix consist primarily of anecdotal success or failure stories. The issue is further obscured by the failure to recognize that there are different types of matrix. Data on the usage and effectiveness of three matrix structures (functional, balanced, and project matrixes) were collected from 500 managers experienced in product development. The results indicate that matrix is still the dominant approach for completing development projects. However, while all three types of matrix have comparable usage rates, the project matrix is considered the most effective. Companies using matrix management should consider project matrix if they are trying to improve performance. (Reprinted by permission of the publisher.)
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Article Abstract:
Most researchers have contended that designing a firm's formal organization to suit strategic requirements is one of the keys to implementing the firm's corporate strategy. This article, however, demonstrates that at lower levels in the hierarchy - specifically, at the product level - there are real problems to making the linkage between strategy and formal organization. It identifies the major factors which appear to constrain and dissuade companies from varying their formal organizational arrangements at the product level. This article proposes that it is the more subtle, more informal management processes which may be the real key to implementing strategy at lower levels within large diversified corporations. (Reprinted by permission of the publisher.)
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Article Abstract:
Sanctions are effective in changing corporate behavior. The usual short-term outlook of corporations are often changed by such sanction measures as bad publicity and personal liability. Such measures will ultimately improve both the social and financial performance of businesses.
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