![]() ![]() In a matrix, people will have two or more formal reporting lines of similar importance. If objectives can’t be met using informal or dotted line reporting then organizations tend to move towards some form of formal matrix organizational structure. However, reality is that the “solid line” or main reporting line manager has the balance of power therefore is usually given priority. With a dotted line there is a formal right for the virtual team leader to bet involved in objective setting, performance appraisal etc. Next, organizations introduce “dotted line” reporting to the virtual team leaders. However when reporting lines, objectives, rewards and careers are all decided within the silo, virtual team objectives receive much less priority and attention than the functional, or silo, ones. We ask people in each of the silos to collaborate. However, when work starts to require cross-functional or international cooperation it is essential that people cooperate across these traditional vertical silos. Most organizations begin to address this by using ad hoc or virtual teams. In this kind of organization, it was rational to not take account of anything that came from another silo. In a silo-based organization, the traditional power structure reinforces the importance of the silo: you climbed the career ladder within your silo, your silo manager decided on your pay and benefits, and your objective setting processes were all within the structure. They worked pretty well in simpler country organizations, where work could be competed largely within the silos.Īs the need for cross-functional and cross-country work (‘horizontal’ work) increases however these silos can get in the way of cooperation across the organization.Ī silo is strong, sealed and hard to penetrate, designed to protect and store the contents. These vertical silo organizations worked well at focusing work on functional and local priorities, and provided clear power and career structures. In a traditional organization these ‘vertical structures’ – included functions such as R&D, HR or marketing that usually operated independently within countries. One reason that companies introduce a matrix organization is to overcome ‘silo mentality’. How do companies use matrix management to break through traditional silo thinking and increase cross functional and cross geographic cooperation? Global Integration’s video: Breaking the Silos ![]()
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