Answered Essay: • Pine Software LLC (PS) is a mid-sized software development firm located in suburban

• Pine Software LLC (PS) is a mid-sized software development firm located in suburban Chicago Illinois. The company was founded in 1992 and focuses on developing and supporting middleware solutions for small and medium-sized businesses in the US. The company has a number of products that are designed to easily facilitate the movement of information across multiple enterprise level software applications such as accounting, CRM and ERP systems. During the first decade of the company’s existence they were very successful and were able to build a small, close-knit group of employees located out of offices in Illinois and Indiana. The companies three founders are all still actively involved, as are seven of the ten original employees. Because of the demand for more products and integrations with new systems, the company decided that they needed to expand in 2003. Because of the economy at that time, the company determined that expansion within the US was risky. To help avoid this risk and reduce costs the company opened a new office in Hyderabad, India and employed a number of programmers at that location. Working with the group and India was initially very problematic. While the company had spent a good deal of time setting up the location and all three founders had traveled to the location to assist with training, there were still communication errors as it related to program specifications and timelines. Initially, management at the India location was provided by a local manger with two decades of experience. He was replaced by an MBA graduate from the University of Illinois, who was originally from India and had moved back two years earlier. The company felt that this situation was ideal because it allowed a bridge between the two cultures. Because of the ongoing issues they experienced, the company added a second manager who would work directly with the developers. This individual also had a US education but was also originally from India. This combination of the two managers, one working on business issues, and the other directly supervising the developers greatly reduced the problems that were experienced. The company was able to have software developed on spec, and on time; but it did require a large amount of work in the explicit initial development of specifications as well as very detailed timelines for releases. In the past year the company has identified the need to become more agile in its development methodologies so that it is able to quickly respond to the needs of its customers. Because of increasing competition from both similar firms and the software vendors themselves, it has become necessary for the company to be able to quickly support new versions of software as they are released, as well as supporting new platforms as they are introduced to the market. Whereas in the past it was acceptable for development cycles to take six months, these new requirements required significantly reduced cycles of two to three months. The development groups in both Illinois and Indiana had adapted to this change by instituting a product-based matrix structure. Within this structure, small clusters of analysts and developers worked in different product niches and were able to quickly respond to the changes demanded by their customers. This often created cycles of heavier and then lighter work, but the teams had adjusted to it successfully. The company is now faced with the task of moving the development group in India to this matrix based model. The systems used before that required intensive specification development are no longer seen as viable, due to the lead times that they require. The founders of the company are concerned about India’s ability to make the switch to a matrix based organization based on other implementation issues they have had in the past.


1. What are the benefits and disadvantages of this model in general?

2. What factors do you believe led to the success of this model in the Illinois and Indiana offices?

3. Based on the company history, what issues might the company face when implementing a matrix model in India? 4. Apa Citation(References)

4. Apa Citation(References)

Expert Answer

  1. The matrix based model is the type of organizational structure which brings together employees and managers from different departments to work together to achieve a goal. The relationships are set up in a grid.


  • Information flows both backcross and up through the organization
  • Resources can be used efficiently
  • Projects are formally coordinated
  • Employees are in contact with many people
  • Employees and project managers have sufficient authority to take decisions. so top management can focus on policies and strategies
  • Employees from various functional areas work under the spirit of team and make the project successful. Team effort is made.


  • Unity of command is not followed as they get command from two superior functional or departmental manager and project manager.
  • It is difficult to balance functional specialist and project specialist at times
  • There will be much paper work and information collection that involves heavy cost. Most of the worker or employees are specialist and they are given high remuneration
  • Matrix organizational structure create problem of over specialization in some situations.
  • In a matrix organization, there will be lack of commitment among employees towards project. No one will be responsible and loyal to the completion of the project.

2) The matrix model was a success in Illinois and Indiana offices due to the high motivation level of founders and employees together to actively participate in the achievement of a goal. There was an increasing demand for products and integration with new system which kept them motivated for working together.

3) Since the company needs to quickly adapt to changes in the market to survive the competition ,it require a specialized workforce which in turn involves a huge cost of training .there may be a communication gap based on cultures of two countries. In order to bridge the gap the company needs ample of time .the employees need to be trained in relation to program specification and timeliness. The matrix structure is complex to be implemented effectively which poses another problem in working in India.

4) No references as the complete answer is based on my personal knowledge

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