SMA: Micro-Electronics Product Division (C) Case Study

12 Oct

SMA: Micro-Electronics Product Division (C) Case Study

Today’s corporate world, many organizations tend to choose a strategic management approach that is a multidimensional structure that try to maximize the strengths and minimize the weaknesses of both the project and the functional structures. In doing this the focus remains on the effect to the output or the product using such approach. Therefore, in this case study by SMA designated change of moving Micro-Electronic Product Division (MEPD) to a matrix organization the outstanding question remains to be, does matrix management foster or stifle the development of new products? And how should it be well utilized to impact positively to the organization? (Larson and Gobeli, 2007)

To respond to this question, there is a need to look at the performance of SMA: MEPD in relation to adopting matrix management. Fortunately, the case can be rated as a success looking from the results accrued to introduction of the matrix management. Matrix organization helped MEPD to improve coordination and significantly improve product development from a total of five (5) products between years 1988 to 1991 as compared to 1992 alone with 9 products.  Increased morale of the staff due to increased participation in decision making, increased commitment to the organizational objectives, increased capital and sales to SFr 150,640 million in 1992 as opposed to previous years before change where sales were below SFr 150,000 million.  This indicates that new products and coordinated function had significantly improved, evident by project teams, good conflict resolution approach and improved marketing.  Based on this evidences, it shows that the project matrix is the most effective.

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