Essay Sample on Benefits Company Gained From Change in Organizational Structure

Paper Type:  Essay
Pages:  4
Wordcount:  893 Words
Date:  2022-11-10


The recent adoption of the matrix organizational structure in two offices based in the U.S. by Pine Software LLC aims at increasing their agility. Now there is an intention to transfer this change to other offices in India. Previously, there were a few timeline specifications and communication problems as a result of expansion to India. However, these issues were ironed out gradually and things have become normal. The current plan is for the adoption of the matrix organizational structure in India to catch up with the technological advancements and changes in customer needs.

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There are numerous benefits that the company will gain from this change in organizational structure. The matrix structure enhances greater interaction between workers, increased motivation, faster response times, greater autonomy, employees adapt faster to new ideas, and workers are in a better position to understand the goals of the company (Uhl and Gollenia, 2016). An increase in the level of interaction between the employees encourages communication hence enhancing a higher level of teamwork. In particular, communication becomes easier under a matrix structure than any other structure. There is a flow of communication between the project managers, supervisors, and team members as well as across departmental boundaries.

The greater autonomy within this new structure gives the employees the freedom to express themselves and the concerns that may arise in the course of their work (Olson and Olson, 2003). The employees have that respect for their superiors, but they do not fear speaking out when something is not right in the organization. In effect, it becomes easier for managers to address the concerns that the employees have raised. Such an environment motivates them to work harder to meet the goals of the company. Studies show that people who are satisfied with the company's method of addressing problems have a higher level of commitment and teamwork.

The matrix structure also has its weaknesses. It is susceptible to confusion regarding the authority (Khazan, 2013). There is confusion among workers regarding the person that directly supervises them. More than one authority figure leads to confusion and possible division between employees who are loyal to either of their supervisors. Divisions could also arise between managers against each other, and managers against employees.

The impact of these divisions is miscommunication and dissatisfaction with the work of employees (Olson and Olson, 2003). Some of the employees could also express their dissatisfaction with the way their managers are handling the operations of the company. When considering the structure to adopt, the advantages should be more than the disadvantages as in this scenario.

There was an effective implementation of the matrix structure in the domestic offices in Indiana and Illinois. Initially, there were some issues with implementation, but the resolution was effective. I feel that the change in structure was successful because three founders of the company still operate these two offices. Also, out of the ten workers who were present when the company started, seven are still present in these domestic offices. This means that the level of trust is higher between them and this builds the rapport between them. Having been around for longer, these workers command a higher level of respect and trust from the other employees.

It may feel like a difficult task to implement this new structure in India because of the previous issues with this office. However, the India office has been operating seamlessly in the past few years; hence there should be no concern about implementation. The only problem is that the environment in India is such that most companies enjoy a hierarchical structure (Agrawal and Tyagi, 2009). This may create concerns for the employees who may not trust this new structure because they have not seen it at work. The management can address this challenge by ensuring that the employees understand how the company plans to implement this structure.

There are steps for the establishment of the matrix structure in the Indian Culture. First, the company should set ground rules, then institute a measure of performance, and finally define the roles of individuals within the India office (Uhl & Gollenia, 2016). These steps will enable an establishment of parameters that will facilitate the running of the office while change occurs. Minor issues are unavoidable, but we will see success in the end.


Overall, I feel that the matrix structure is the best model for this company. Despite its introduction in an unfamiliar environment, the correct implementation can make adaptation to the new structure easier for the employees. This new structure is better because it enhances greater interaction between workers, increased motivation, faster response times, greater autonomy, and the employees adapt faster to new ideas. I would advise the company to be patient with the implementation of these changes because it is a new environment; hence it may take longer than usual for people to become accustomed. The management needs to ensure a smooth transition by helping the employees through training programs and question-answer sessions.


Agrawal, R. K., & Tyagi, A. (2010). Organizational culture in Indian organizations: an empirical study. International Journal of Indian Culture and Business Management, 3(1), 68. /

Khazan, O. (2013). Behind the 'Bad Indian Coder.' Retrieved from

Olson, J. S., & Olson, G. M. (2003). Culture surprises in remote software development teams. Queue, 1(9), 52.

Uhl, A., & Gollenia, L. A. (Eds.). (2016). A handbook of business transformation management methodology. Routledge.

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