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Summary of the Article

Tobin and Franze (2005) who wrote an article titled as Organisational structure and
knowledge management: A case study, investigated whether organizational structure of an
organization has influence on its ability to share knowledge. The investigation involve only
one case study on an organization in the telecommunications industry which the researchers
called as Intelco. The research specifically focus on looking at the ability in encouraging
the sharing and integration of knowledge of an organization that has a strong matrix structure.
The research problem is based on the theory of two different research domains: organisational
design (OD) and knowledge management that act as the variables for the study.

As mentioned, the aim of the research is to investigate whether the organizational structure
(matrix organization) supports or undermines the practices of knowledge management.
Matrix organization is specifically chose as a form of the organizational structure to be
studied. Intelco is chosen for the case study with justification that it has chosen to resolve the
conflict between functional technical excellence and customer focus by implementing a
highly matrixed organizational structure which makes it an ideal case for the studys
objective. The author described the structure of Intelco as a process oriented functionalcustomer matrix structure.

The specific sub-problems are defined which were linked back to the main problem. Such
sub-problems are for identifying the perceptions of individuals in the function departments
regarding whether the matrix organization: supports sharing of information and knowledge;
act as barriers to communicating knowledge and information. It also seeks to identify if such
individuals resistant in knowledge and information sharing with other functional departments
and if the organizational structure restrict the individuals to sharing knowledge and
information with other functional departments. General purpose of the study was to
academically contribute to the body of knowledge management and knowledge of matrix
organizations. It was a case study research which utilizing a mix-method of both quantitative
and qualitative methods. Sampling method employed by the study is a probability-based
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cluster sampling based on eight departments in the Intelco. Questionnaire that consists of two
parts are used for the data collection phase.

The first part is for collecting quantitative data and second part consisted of two open-ended
questions for collecting qualitative data. Authors claimed that the chosen sample was
validated, survey response rate was justified and questionnaire was validated. For the data
analysis, the quantitative data was analysed quantitatively, and qualitative data is analysed
using content analysis. An attempt also was made to find correlation between the various
factors and two factors assessing optimality and effectiveness of the acquisition process.

The general findings of the study indicate that the matrix organisational structure employed
by Intelco has a tendency to undermine the organizations ability to share and integrate
knowledge. The sample perceived that matrix organization structure does not generally
support their sharing of information and knowledge, rather, it tends to act as a barrier to such
purpose. It was indicated by the individuals that they are open for information and knowledge
sharing with other departments. Though, the organization structure seemed to restrict them
from sharing knowledge and information with other departments.

SWOT Analysis
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SWOT is an acronym that is stands for Strengths, Weaknesses, Opportunities, and Threats. It
is a business technique for organizations use on its products, services and markets to decide
the best means to achieve future growth (Team FME, 2013). Though it is widely used in
business field, it can also be valuable for organizations, individuals, as well as for team
building (Fine, 2009). The process of SWOT analysis involves identifying the organizations
strengths and weaknesses, and both the opportunities and threats of the market which the
organizations operate (Team FME, 2013).

The term strengths refers to internal factors that are favourable in order to achieve objective
of organization while weaknesses is the internal factors that are unfavourable in achieving
organizations objective. Both opportunities and threats are external factors in which
opportunities is favoured to achieve organizations objective while threats is unfavourable
factors to achieve objective of organization. A strength adds value, or offers a competitive
advantage to an organization which can be viewed as bringing positive implication to the
company. Weaknesses are the products or services characteristics that are detrimental to
growth.

Contrasting with strength, weakness is something that has disadvantages implications

especially when compared position over competitors. The factors for external analysis of
business include the market, ecosystem and third parties. In identifying external factors, they
should be classified into potential opportunities and threats.

Opportunities may arise from changes in several areas such as technology, markets, social
patterns, supply methods, government policy, global offerings, lifestyle and population
profiles. Threats are the internal risks faced by organizations which made up of external
factors beyond control. Although threats are considered as external factor that organizations
have little or no control over, consideration should be place on this factor to identify the
threats and then making contingency plans to ensure prepared response to such threats. In
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business, these threats may originate from factors such as competitors reducing prices, new
technology, supply costs increase, government regulations, demographics alter, economic
cycle, supply chain and changes in consumer behaviour (Team FME, 2013).

Harrison (2010) suggests that there are four steps involved in SWOT analysis namely; (1)
collection and evaluation of key data, (2) The organizational data are collected sorted into the
SWOT categories which are: strengths, weaknesses, opportunities and threats, (3)
development of a SWOT matrix, and (4) incorporating the SWOT analysis into the decisionmaking process. Strengths are viewed as current factors that have prompted outstanding
organizational performance (p. 93). Meanwhile, David (2010) listed eight steps involved in
building a SWOT matrix:
1. List the firms key external opportunities.
2. List the firms key external threats.
3. List the firms key external strengths.
4. List the firms key internal weaknesses.
5. Match internal strengths with external opportunities, and record the resultant SO
Strategies in the appropriate cell.
6. Match internal weaknesses with external opportunities and record resultant WO
Strategies
7. Match internal strengths with external threats, and record resultant ST Strategies.
8. Match internal weaknesses with external threats, and record the resultant WT
Strategies. (p. 179)

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These steps are illustrated in Figure 1 below.

Strengths

Weaknesses

Opportunities

SO Strategies

WO Strategies

Threats

ST Strategies

WT Strategies

Figure 1. Illustration of SWOT matrix

Based on a brief explanation of a SWOT analysis, a SWOT analysis is carried out

based on the article summarized above organisational structure and knowledge
management: A case study. The SWOT analysis listed accordingly as follows:
STRENGTHS

Individuals in the department are not resistant to sharing information with other

departments.
Structured on a Functional basis
Well-defined functions of departments
Manage to win tenders and orders

WEAKNESSES

Too many departments

Too many functional barriers
Lack of recognition and feedback that necessary for sharing and integrating

knowledge.
The organizational structure does not provides mechanism to share and integrate tacit

knowledge.
Relying on and overloading formal organization integrators to force integration and
coordination.

OPPORTUNITIES

Strategic focus on strong knowledge integration could provide sustainable

competitive advantage for the company.

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Matrix structure can potentially create an internal market for skilled resources with

high tacit knowledge.

Increased recognition may significantly improve knowledge sharing and integration.
Technology and culture also may influence organizational effectiveness.

THREATS

Disconnection between customer dimensions and functional dimensions.

Rapid changing telecommunications industry.
Multiplicity of functional departments interfering effective collaboration.
Discrepancy between integrating manager and functional manager.

The obvious strengths of the Intelco is that individuals in the department are not resistant in
sharing information with other departments. It is structured on a Functional basis in order to
ensure strong technology depth which forms the foundation for building solutions. Each
departments also subject to the well-defined functions assigned to them. Despite the
perceived ineffective knowledge output, the organisation still manages to win tenders and
orders.

The organization possessed too many departments and functional barriers that are seen as the
weaknesses part of the organizational structure which inhibited interaction and sharing of
knowledge. Because Intelco has too many departments, it depends on the key accounts for
coordinating sharing and integration of knowledge among the department. The coordination
is seen very inefficient as it takes the form of group decision making that is known as the
least efficient method to coordinate knowledge integration. The structure also undermines the
important of motivational supports of feedback and recognition. Other than that, the
organization through its organizational structure, does not provides mechanism for sharing
and integrating tacit knowledge.

Opportunities that can be identified include sustainable competitive advantage for the
company given that it has strategic focus on strong knowledge integration; matrix structure
can potentially create an internal market for skilled resources with high tacit knowledge. It is
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also identified that recognition can significantly improve knowledge sharing and integration
which suggests that the company should address recognition. Besides structure, technology
and culture also contributed to Infrastructure Capability that combined with Process
capability to gives impact on organizational effectiveness.

For the threats, disconnection may occur between customer dimensions and functional
dimensions of the matrix as individuals who make contribution to a project of customer
dimension, their career decisions are based on the functional dimension that can potentially
further reduced incentive to integrate and share knowledge. The rapid changing
telecommunication industry can also posed risk to the company as if not respond effectively
and efficiently, the company may lost its track in the industry. Apart from that, it is also
knwoen that multiplicity of functional departments can intruding the effective collaboration
(working together) among individuals and departments of the company. There could also be
discrepancy between integrating manager and functional manager in which integrator needs
innovative, high performance and creative knowledge workers for compiling knowledge
outputs to win business in a competitive market while functional manager is concerned to
retain staff for maximising capacity and grow the tacit knowledge within the department.

The next step after identifying the SWOT components is to create the SWOT matrix. This is
depicted in Figure 2 based on the suggestion of David (2009). The potential strategies for
implementation also suggested in the SWOT matrix. As can be seen from Figure 2, five
strategies can be drawn from the SWOT matrix. This include to supporting the sharing of
information among departments by strategically focus on strong knowledge integration as the
individuals in the department are not resistant for information sharing. The WO strategies
suggest to increase recognition and feedback on employees for improving the sharing and
integrating of knowledge. Secondly is to provide mechanism within the matrix structure that
can occupy tacit knowledge as known that matrix structure can potentially create an internal
market for skilled resources with high tacit knowledge. As there are many departments which
posed threats to the effective collaboration, the ST strategy suggests that effort is taken to
ensure effective collaboration among departments by sharing information as they are not
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resistant to it. Finally, the WT strategy suggest that the number of departments in the
organization is reduced so that knowledge sharing and integration can be improved and
facilitated effectively.

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Strengths
1. Individuals in the department are not
resistant to sharing information with other
departments.
2. Structured on a Functional basis
3. Well-defined functions of departments
4. Manage to win tenders and orders

Weaknesses
1. Too many departments
2. Too many functional barriers
3. Lack of recognition and feedback that
necessary for sharing and integrating
knowledge.
4. The organizational structure does not
provides mechanism to share and integrate
tacit knowledge.
5. Relying on and overloading formal
organization integrators to force
integration and coordination.

Opportunities
SO Strategies
WO Strategies
1. Strategic focus on strong knowledge
integration could provide sustainable 1. Supporting the sharing information among 1. Increase recognition and feedback for
departments which focuses on strong
employees in order to improve knowledge
competitive advantage for the
knowledge
integration
(S1,
O1).
sharing and integration. (W3, O3)
company.
2. Providing mechanism within the matrix
2. Matrix structure can potentially create
structure to occupy tacit knowledge (W4,
an internal market for skilled
O2).
resources with high tacit knowledge.
3. Increased recognition may
significantly improve knowledge
sharing and integration.
4. Technology and culture also may
influence organizational
effectiveness.

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Threats
1. Disconnection between customer
dimensions and functional
dimensions.
2. Rapid changing telecommunications
industry.
3. Multiplicity of functional departments
interfering effective collaboration.
4. Discrepancy between integrating
manager and functional manager.

ST Strategies

WT Strategies

1. Getting collaboration (working together) by 1. Reducing the number of departments (W1,

sharing information among departments (S1, T3)
T3).

Figure 2

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SWOT matrix of Intelco company

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Discussion and Conclusion

This paper summarizes the case study of organisational structure and knowledge
management: A case study by Tobin and Franze (2005). Weaknesses posed by the
organization are highlighted and the main findings suggests that matrix organization structure
decreases the organizations ability for sharing and integrating knowledge. Besides, this paper
also provides discussion on the SWOT analysis conducted based on the reviewed article. It is
noted that the strong matrix structure, rather than encouraging knowledge sharing and
integration, it actually perceived to inhibit interaction and sharing of knowledge. As
mentioned by the authors that matrix problems arise because of poor application or
misunderstanding of how the matrix should work (Tobin & Franze, 2005, p. 3), this can be a
reason for the perceived inhibitions posed by the matrix structure. The fact that there are
structural barriers as the dominant issue inhibiting knowledge sharing is worth noted and
should be addressed. Having too many departments and departments too specialised in this
case, is perceived as not favourable for sharing knowledge. It is then worth investigation to
find the cause of inhibitions of information sharing by looking at the application of the matrix
structure.

Carrying out SWOT analysis is beneficial as he process of SWOT analysis helps to identify
the organizations strengths and weaknesses, and both the opportunities and threats of the
market in which the organizations operate. By identifying the strengths, weaknesses,
opportunities and threats, better planning and strategies can be done to ensure sustainable
growth of the organization. Based on the listed components of SWOT, a matrix is created and
based on this, some strategies are identified in order to suggest strategies that will work in
advantage for the company. These include: Supporting the sharing information among
departments which focuses on strong knowledge integration; increasing recognition and
feedback for employees in order to improve knowledge sharing and integration; providing
mechanism within the matrix structure to occupy tacit knowledge; getting collaboration
(working together) by sharing information among departments; and reducing the number of
departments. These are merely suggestions which implies that they are not necessarily
guarantee a future growth but can be beneficial and worth notified.
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In conclusion, the organization structure, particularly the matrix structure in this case, is
perceived to not support the sharing of knowledge and information and tends to be a barrier
for communicating knowledge and information. Strategies as suggested previously, can be
carried out to address this issue and facilitating and promoting knowledge and information
sharing and integration more effectively and efficiently. These strategies can be identified
through SWOT analysis and after they are identified based on the SWOT matrix, the last step
in the SWOT analysis process is to incorporate the SWOT analysis into the decision-making
process. These are all done in order to ensure future and sustainable growth of an
organization.

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Reference

David, F. R. (2010). Strategic Management: Concepts and Cases (13th ed.). Upper Saddle
River, NJ: Prentice Hall.
Fine, L. G. (2009). The SWOT Analysis. Kick.It, LLC.
Harrison, J. P. (2010). Essentials of Strategic Planning in Healthcare. Chicago: Health
Administration Press
Team FME. (2013). SWOT Analysis: Strategy Skills. Retrieved November 29, 2012 at
http://www.free-management-ebooks.com/dldebk-pdf/fme-swot-analysis.pdf
Tobin, P. K. J. & Franze, M. H. (2005). Organisational structure and knowledge
management: A case study. Mousaion, 23(2): 149-164.

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