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45
ety of functional areas. Essentially the matrix structure organises a
business into project teams, led by project leaders, to carry out certain
objectives. Training is vitally important here in order to avoid conflict
between the various members of the teams.
During the 1980s a wave of restructuring went through industry
around the globe. This process, known as delayering, saw a change in
the traditional hierarchical structures with layers of middle manage-
ment being removed. This development was driven by new technology
and by the need to reduce costs. The overall result was organisations
that were less bureaucratic.
The delayering process has run its course now. Among the trends
that currently influence how a company organises itself is the move
towards centralisation and outsourcing. Restructuring has evolved along
with a more 'customercentric' approach that can be seen to good effect in
the banks. They now categorise their customers and their complex bor-
rowing needs into groups instead of along rigid product lines.
Another development can be seen in larger companies, which
are giving their employees more freedom-to innovate in order to main-
tain a competitive edge.
Ms Julia MacLauchlan, Director of Microsoft's European Product
Development Centre in Dublin, said the leading software company had
a very flat organisational structure. ‘There would not be more than
around seven levels between the average software tester and Bill Gates,’
she said.
Microsoft is a good example of a company that is structured
along product lines. In Ireland, where 1,000 employees work on local-
isation of the software for all Microsoft's markets, the company is split
up into seven business units. Each unit controls the localisation of their
specific products while working closely with the designers in Micro-
soft's Seattle Headquarters.
It works, said Ms Maclauchlan, because everyone who works in
the unit is ‘incredibly empowered’.
‘Without a huge bureaucratic infrastructure people can react a
lot more quickly to any challenges and work towards the company's
objectives.'
(From The Irish Times)
46
TASKS
I. Match these definitions with the four organisational struc-
tures described in the text:
1. A cross-functional structure where people are organised into
project teams.
2. A structure rather like the army, where each person has their
place in a fixed hierarchy.
3. A structure that enables a company to operate internationally,
country by country.
4. A structure organised around different products.
II. Match these nouns as they occur together in the text:
A B
product teams
target objectives
borrowing lines
project units
delayerin company
country process
business markets
software needs
company managers
III. Use an appropriate phrase from Exercise II to complete
the sentence:
1. Banks need to be fully aware of their customers’ __ borrow-
ing needs____.
2. Silicon Valley is full of ___________ .
3. Many companies are now organised along ___________, in
which each division is responsible for a group of products.
4. A matrix organisation groups people into ___________ .
5. Some companies are divided into different _____________,
often also called profit centers.
6. A multinational company will often have a number of
_____________, in charge of activities in different parts of the world.
ety of functional areas. Essentially the matrix structure organises a TASKS business into project teams, led by project leaders, to carry out certain I. Match these definitions with the four organisational struc- objectives. Training is vitally important here in order to avoid conflict tures described in the text: between the various members of the teams. 1. A cross-functional structure where people are organised into During the 1980s a wave of restructuring went through industry project teams. around the globe. This process, known as delayering, saw a change in 2. A structure rather like the army, where each person has their the traditional hierarchical structures with layers of middle manage- place in a fixed hierarchy. ment being removed. This development was driven by new technology 3. A structure that enables a company to operate internationally, and by the need to reduce costs. The overall result was organisations country by country. that were less bureaucratic. 4. A structure organised around different products. The delayering process has run its course now. Among the trends that currently influence how a company organises itself is the move II. Match these nouns as they occur together in the text: towards centralisation and outsourcing. Restructuring has evolved along with a more 'customercentric' approach that can be seen to good effect in A B the banks. They now categorise their customers and their complex bor- product teams rowing needs into groups instead of along rigid product lines. target objectives Another development can be seen in larger companies, which borrowing lines are giving their employees more freedom-to innovate in order to main- project units tain a competitive edge. delayerin company Ms Julia MacLauchlan, Director of Microsoft's European Product country process Development Centre in Dublin, said the leading software company had business markets a very flat organisational structure. ‘There would not be more than software needs around seven levels between the average software tester and Bill Gates,’ company managers she said. Microsoft is a good example of a company that is structured III. Use an appropriate phrase from Exercise II to complete along product lines. In Ireland, where 1,000 employees work on local- the sentence: isation of the software for all Microsoft's markets, the company is split 1. Banks need to be fully aware of their customers’ __ borrow- up into seven business units. Each unit controls the localisation of their ing needs____. specific products while working closely with the designers in Micro- 2. Silicon Valley is full of ___________ . soft's Seattle Headquarters. 3. Many companies are now organised along ___________, in It works, said Ms Maclauchlan, because everyone who works in which each division is responsible for a group of products. the unit is ‘incredibly empowered’. 4. A matrix organisation groups people into ___________ . ‘Without a huge bureaucratic infrastructure people can react a 5. Some companies are divided into different _____________, lot more quickly to any challenges and work towards the company's often also called profit centers. objectives.' 6. A multinational company will often have a number of (From The Irish Times) _____________, in charge of activities in different parts of the world. 45 46
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