Imagine you are the HR director of a growing international staffing organization that services both North America and South America. The CEO has come to grips with the fact that the HR group, which is currently decentralized, is in need of restructuring to account for the expected increase in revenues. The CEO has asked for your opinion on how to best restructure the firm.
Based upon your knowledge, recommend an organizational structure (for example, functional, matrix, or projectized) that will provide growth for the firm. Also, assess the influence that this project will have on the customers (who are located throughout the Americas) that are serviced by the HR group.
Full Answer Section
A matrix organizational structure is well-suited for a growing international staffing organization because it offers a number of advantages:
- Flexibility: A matrix structure is more flexible than a functional structure because it allows employees to be assigned to different projects based on their skills and experience. This is important for a staffing organization, which needs to be able to quickly respond to the needs of its clients.
- Efficiency: A matrix structure can be more efficient than a functional structure because it eliminates the need for duplicate functions. For example, a single project manager can oversee all aspects of a project, from recruiting and onboarding to performance management and compensation.
- Communication: A matrix structure can improve communication and collaboration between different departments and teams. This is important for a global organization, where employees may be located in different time zones and cultures.
Impact on customers
The impact of a matrix organizational structure on the customers of the HR group is likely to be positive. A matrix structure can help the HR group to be more responsive to the needs of its customers by allowing employees to be assigned to projects based on their skills and experience. Additionally, a matrix structure can help to improve communication and collaboration between the HR group and its customers.
Implementation challenges
The implementation of a matrix organizational structure can be challenging. One challenge is that a matrix structure requires a high level of communication and collaboration between employees. Another challenge is that a matrix structure can be complex to manage, as employees may have two reporting managers with different priorities.
Recommendations
To successfully implement a matrix organizational structure, the HR group should take the following steps:
- Develop a clear and concise communication plan. The communication plan should explain the new organizational structure to employees and how it will work.
- Provide training to employees on the new organizational structure. The training should cover topics such as how to manage multiple priorities and how to communicate effectively with two reporting managers.
- Establish a process for resolving conflicts between employees and their reporting managers. The process should be fair and transparent.
- Monitor the implementation of the new organizational structure and make adjustments as needed.
By following these steps, the HR group can successfully implement a matrix organizational structure that will support the growth of the firm and improve the customer experience.
Sample Answer
As the HR Director of a growing international staffing organization that services both North America and South America, I would recommend a matrix organizational structure for the HR group.
A matrix organizational structure is a hybrid structure that combines elements of functional and projectized structures. In a matrix structure, employees have two reporting managers: one functional manager and one project manager. The functional manager is responsible for the employee's overall career development and performance management, while the project manager is responsible for the employee's work on a specific project.