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Matrix structure, linking strategy to culture, EPS and EBIT

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I dont understand the following question can you please explain?

1) Explain the matrix structure of an organization and how might it be useful strategic tool?

2) Linking strategy to culture is important for organizational success. Name four techniques for altering culture and explain how each can aid in organizational success.

3) Compare and contrast Mexican, Russian and Japanese culture. Explain their difference and similarities. Which culture may prove the most challenging for American business to work with?

4) Explain why EPS/EBIT is a central strategy -implementation technique. Discuss the limitation of this type of analysis.

5) Explain the nature of strategy evaluation. Why is it becoming more difficult?

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Solution Summary

Matrix structure, linking strategy to culture, EPS and EBIT are explained as it pertains to strategic tools.

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1. Matrix structure is a combination of functional and divisional structure within an organization. In this structure the functional departments gets combined with product groups based on the project requirements. So in a matrix organization, individual employee has to work under two managers on is the project manager and the other with its own functional area manager.
As far as advantages of matrix organization are concerned, matrix organization facilitates the use of specialized facilities, personal and at the same time equipment. Here the resources are shared among all departments based on there needs. Individual employee with high level of expertise can manage there time among various projects at one time. Along with these advantages due to resource sharing mechanism in the matrix organization, the utilization of resources is very proper and due to this its efficiency is higher.

2. There are following four techniques that can help altering the organization culture:
Use of Human Resources Department: Human resource department can be the most important tool to alter the organization structure. HRD incorporates continuity management into the organization and alters the cultural change in the organization by its different tools like policies it issues, the personals it hires, the evaluations it performs, the training it conducts, and the compensations its set for increasing motivational level. Using HRD for organizational culture change helps ...

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Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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