PT. Paramount as a leading Indonesian exports services and international trading company had experienced rapid growth. As a company with global operations the organization required a structure that can provide a balance between decentralization and coordination of activities, uses of resources, and high degree of management control.



The management of PT. PARAMOUNT has anticipated this organizational need. It had recently adopted a new centralized control system for its operational activities, and a restructuring of the organization from Divisional Organization Structure to Matrix Organization Structure.



The objective of the Group Field Project is to assess the implication of the new organization structure at the improvement to the synergism between the existing operations and the company strategy, This also includes an evaluation of the effectiveness of management systems to support its vision, mission and goals, The Group Field Project is required to identify and reveal if any problems exist in the organization, related to the on going management systems in the company.



Based on its findings, the Group Field Project will develop recommendations of possible changes needed to achieve higher organizational effectiveness, efficiency and employees' motivation.



The project covers matters of internal organization dynamics, new organization structure and management of change. These topics were approached by collecting information on communication patterns, decision-making processes, and control mechanism and procedures.



The study measures attitudes and perception of company executives towards these organizational factors. Data were collected through interviews with company executives and written questionnaires from the company executives at managerial level. Using statistical methods these attitudes and perceptions patterns were tested to assess the level of significance in the distribution patterns.



Critical issues that support the implementation of matrix structure in the organization were recommended in the end of the report. They are in the area of communication, coordination, procedures, job descriptions and training.



Research location: PT Paramount

Supervisor: Kathleen Goodman, PhD.

Accepted : 19 December 1992