Compare functional management with matrix management to select an effective and suitable management style to manage projects in Desert Cool cc

Wolstenholme, Henry (2004-12)

Thesis (MBA)--Stellenbosch University, 2004

Thesis

ENGLISH ABSTRACT: Desert Cool is a South African manufacturing, wholesale, and retail company that markets 4x4 accessories and camping gear through its retail outlets trading as 4x4 Mega World. Desert Cool has sole import rights for well known products, like Engel fridge/freezer, ARB accessories and Old Man Emu suspensions. Desert Cool recently created its own brand name "Sunset Gear" under which it will market various 4x4 accessories and camping gear. Desert Cool has grown fast over the last two years and they are already being seen as the leading 4X4 accessories company in South Africa. Important priorities in the organisation are the development of new products, changes to current products and to satisfy customer needs. Currently these priorities are not being managed properly. Also due to fast growth in terms of sales the organisational structure has not been attended to and has fallen behind. Several projects have delivered poor results due to the wrong approach and poor management of the projects. The goal of this study is to sell the concept of matrix management and organisational structure to the management of Desert Cool, instead of keep on following the conventional functional structure. The study project examines the advantages, disadvantage and characteristics of functional as well as matrix management. It also examines and lists the criteria's on which one can select between the two organisational structures. These criteria have been used in a survey with a questionnaire to obtain top management's views. The survey resulted in the following conclusions: The questionnaire used can be divided into three sections, section 1 is an introduction to matrix management, section 2 is a selecting phase where the respondents need to select between matrix and functional management and the last section is an evaluation of the respondents' responses in the first two sections. The results indicate that the average vote for matrix management in section 1 is 94%, in section 2, 57% and in section 3, 68%. The low percentage in section 2 is not due to a low vote percentage for matrix management (received 84% of the votes), but more due to the level of preference for matrix management. The percentage votes received in section 3 is not too low, but a higher percentage was expected when compared to the 94% in section 1. The 68% also raises a concern when one looks at the results in the functional management section. The results also indicate that the average votes for functional management in section 1 is 6%, in section 2 it is 11% and in section 3 it is 54%. Due to the low score in section 1 a low score in section 2 was expected and for that matter also in section 3, but a fairly high vote came from section 3. The introduction and selecting sections (section 1 and 2) give results that are inline of what were expected, but the evaluation section (section 3) shows a different result. With a closer investigation into this result, it became clear that most of the people could not separate the matrix characteristics from the functional characteristics. This resulted that in some instances high votes were given to both the matrix and the functional characteristic that are opposed to each other. Due to limited knowledge of matrix management amongst management, we need to supply them with more clear info so that they can obtain a better understanding. A better understanding of matrix management might have resulted in a better response in section 3 of the questionnaire. Overall a good result has been obtained. To conclude, Desert Cool cc is growing at a fast rate, but their structure and management style has fallen behind. Matrix management will offer a complete management style as can be seen from the results. The basis has been laid through the survey and matrix management need to be represented in a formal way to all the people of Desert Cool. This document will contribute to understand the advantages, disadvantages, characteristics and the issues of matrix management. It also explains the role of the project manager in this structure.

AFRIKAANSE OPSOMMING: Desert Cool is 'n Suid Afrika gebaseerde maatskappy wat 4 x 4 toebehore en kamptoerusting vervaardig, groothandel en klein handel en bemark dit deur sy kleinhandeltakke, 4 x 4 Megaworld. Desert Cool het alleen invoerregte vir produkte soos Engel vries/yskaste, ARB toebehore en Old Man Emu onderstelle. Desert Cool het onlangs sy eie handelsmerk geskep, naamlik 'Sunset Gear'. Verskeie produkte word onder hierdie handelsmerk bemark. Desert Cool het baie vinnig gegroei oor die laaste twee jaar en word reeds gesien as die leier in die 4 x 4 toebehore mark in Suid-Afrika. Belangrike prioriteite binne die maatskappy is die ontwikkeling van nuwe produkte, verbeteringe aan huidige produkte en om aan kliente se behoeftes te voldoen. Huidiglik word hierdie prioriteite nie behoorlik gebestuur nie. As gevolg van die hoe groei tempo in verkope en die groot hoeveelheid aandag wat daaraan gegee is, het die ontwikkeling van die organisasie struktuur agterwee gebly. 'n Hele paar projekte het swak resultate opgelewer weens die verkeerde benadering en swak bestuur daarvan. Die doel van hierdie studie is om die konsep van matriksbestuur en -organisasie struktuur aan die bestuur van Desert Cool te verkoop, en om af te sien van die huidige funksionele organisasie struktuur. Die studieprojek ondersoek die voordele, nadele en kenmerke van funksionele- en matriksbestuur. Dit ondersoek ook die kriteria's wat gebruik kan word om te kies tussen die twee organisasie strukture. Hierdie kriteria's word dan gebruik in 'n ondersoek, in die vorm van 'n vraelys, om die opinie van die hoofbestuur te verkry. Die vraelys kan in drie afdelings opgedeel word, afdeling 1 kan beskou word as 'n inleiding tot matriksbestuur, afdeling 2 is 'n keuse fase waar die respondente 'n keuse moet maak tussen funksionele- en matriksbestuur en die laaste afdeling dien as 'n evaluasie van die respondent se antwoorde in afdeling 1 en 2. Die resultate dui daarop dat die gemiddelde stem vir matriksbestuur in die afdeling 1, 94% is, in afdeling 2, 57% is en in afdeling 3, 68% is. Die lae persentasie gemiddelde in afdeling 2, is nie as gevolg van 'n lae stem persentasie vir matriksbestuur nie (verkry 84% van stemme), maar meer as gevolg van die vlak van voorkeur vir matriksbestuur. Die persentasie stemme ontvang in afdeling 3 is nie te laag nie, maar 'n hoër persentasie is verwag wanneer daar gekyk word na die 94% wat in afdeling 1 behaal is. Die 68% is ook kommerwekend wanneer daar gekyk word na die persentasie stemme wat funksionele bestuurs in afdeling 3 (gemiddelde van 54%) behaal het. Die resultate dui dat die gemiddelde stem vir funksionele bestuur in afdeling 1, 6% is, vir afdeling 2, 11 % is en vir afdeling 3, 54% is. As gevolg van die lae telling in afdeling 1, is daar 'n lae telling in afdelings 2 en 3 verwag, maar 'n redelike hoë persentasie stemme is behaal vir funksionele bestuur in afdeling 3. Afdeling 1 (inleding) en afdeling 2 (selekteuring) lewer resultate in Iyn met wat verwag is, maar afdeling 3 (evalueering) het 'n meer teenstrydige resultaat gelewer, as dit wat verwag is. Met nadere ondersoek op die resultaat, het dit aan die lig gekom dat respondente nie kon onderskei tussen die matriks en die funksionele kenmerke van die strukture nie. Dit het daartoe gelei dat hoë stemme in sommige gevalle aan beide die teenstaande kenmerke gegee is. Die beperkte kennis wat hoofbestuur het van matrikbestuur, het bygedra tot die swak resultaat in afdeling 3. Dit is dus noodsaaklik dat hulle eers meer breedvoerig ingelig word aangaande matriksbestuur, sodat hulle dit better kan verstaan, voordat 'n evaluasie van so 'n aard gedoen word. Indien hulle matriksbestuur beter verstaan het kon dit tot 'n beter resultaat in afdeling 3 gelei het. Oor die algemeen is goeie resultate verkry. Om mee af te sluit, Desert Cool groei teen 'n hoe tempo, maar die organisasiestruktuur en bestuurstyl het agterwee gebly. Die resulate dui daarop dat matriksbestuur die mees aangewese bestuurstyl vir Desert Cool is. Die basis is gelê deur die ondersoek en nou moet matriksbestuur op 'n formele manier aan almal oorgedra word. Hierdie dokument sal bydra om die voordele, nadele en kenmerke van matriksbestuur beter te verstaan. Dit verduidelik ook die rol van die projekbestuurder in die struktuur.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49888
This item appears in the following collections: