Business entities need to be both flexible and sensitive in the application and change of organisational structure. Flexibility is imperative because there is no single structure that will serve an outfit perfectly for an extended period. With business climates constantly fluctuating and the makeup and capability of the management and staff changing over time, organisational structure also needs to be changed and optimised to best suit the times and the people involved.
In the realm of organisational development, matrix structure was a bright star when it was first introduced. It promised to be a culmination of the many rigid structures before it, with features allowing for flexibility, as the most desirable element. The United States was its hotbed some 20 years ago, when many companies experimented with it and successfully adopted matrix.
Today we see it making huge inroads in all parts of the world. This is due mainly to the recent advent and acceleration of globalisation and even larger multinational conglomerates. With globalisation comes a line-up of merger and acquisition, consolidation and other equally abrupt and disruptive changes to existing businesses. There is no longer the opportunity of decades ago to experiment with matrix and develop and improve it. Today's business world is handed matrix undiluted, and is forced to practice it to full measure.
Whether a company hones up on matrix and implements it once it is ready, or matrix is otherwise forced upon it, the transition is still wrought with considerable difficulty and challenge. While organisational change in general is a major event in the life of a company, the change to matrix will profoundly alter the human-relations landscape, performance expectations and sense of teamwork within a company. Moving out of the silo-like strict line-of-command structure, for example, to matrix can tax emotions and the sense of security and loyalty among the rank and file.
When one considers that globalisation, merger and acquisition and consolidation are rarely comparable to a marriage of equals, events of this nature create personal insecurity that must be dealt with. Failure to handle these issues will taint the change and transition period with suspicions of hidden agendas or deception. It is better to attach a schedule, milestones, or a timetable to the announced change. The time limit alone leads to a clear-cut moment of change and closure. The organisation can then move on to its next challenges.
It is also advisable that the change is announced and explained in the most transparent manner. The hearts and minds of the people are undergoing change and care and sensitivity must be used at such a time.
Given the demand these days for organisations to be dynamic and flexible to cope with ever-increasing competition, an organisation must prepare its staff to be dynamic, ready to adapt and perform in a changed and changing environment. When they are comfortable with operating in a dynamic and flexible setting, staff can begin to gather self respect. And with self respect comes respect for other team members, leading to a healthy, functioning team that is prepared for the future.
With clarity of intent and a genuine respect for fellow members of staff and officers, any change, including major organisational-structure changes, can be carried out with support from all stakeholders. The message should be that change is not only constant, but when done correctly, it can be positively embraced.
Don Bhasavanich is a councillor of the Thailand Management Association. Follow his article in Hi! Managers on every first Wednesday of the month.