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Paper: Benefits and risks of a matrix organisation

Presentation to illustrate a paper

Alex Weidauer

on 11 November 2012

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Transcript of Paper: Benefits and risks of a matrix organisation

The risks and benefits of a matrix organisation, using the example of the Schneider Electric GmbH • control of the overall resources,
effort and costs

• better allocation of resources

• parallel execution of projects

• shared responsibility of line
manager and project manager

• employees are able to return

• no need for new and external

• synergy effects between single

• increased flexibility • increased reporting effort

• potential fields of conflict

• creation of a multidimensional
information- and work flow

• duplications of single efforts

• tendency towards role ambiguity Organisational structure
of the Schneider Electric GmbH Definition:
Matrix Organisation Benefits of the Matrix Organisation • more turnover and more brand loyalty

• synergy effects between the single business

• unique selling point

• increased market

• ability to specialize businesses and

• increased flexibility

• need for new resources and competences

• cost efficiency Drawbacks
of the Matrix Organisation • higher effort for processes and
decision making

• difficult allocation of employees

• challenge to develop suited incentives

• need for appropriate project Conclusion Practical example lot of drawbacks arise especially by rising complexity benefits predominate

main argument: increased market share Theoretical knowledge reflects results from practical example benefits predominate most important perception: necessary for efficient results represents overall conflict of big companies:
build to coordinate and improve, but... benefits predominate Thanks for your attention Benefits Drawbacks Drawbacks (Schneider Electric) Benefits (Schneider Electric) (Schneider Electric) (Schneider Electric) Aim of the paper • analyze of the risks and benefits of a matrix

• demonstrate possible effects

• spot tendency towards risks or benefits Structure of the presentation Theory:

• definition "matrix organisation"
• benefits
• drawbacks

Practical example:

• definition organisational structure
of the Schneider Electric GmbH
• benefits
• drawbacks


• tendency resulting from theory
• tendency resulting from reality
• overall tendency Problem statement • necessary to survive in modern business environment

• contains variety of fields of conflict

identification of the risks and benefits occurring from a matrix organisation Organisational structure framework of all positions existing in a company and their specific relationship towards each other
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