|
|
Matrix Organization |
Description of Matrix Organization. Explanation. |
|
Definition Matrix Organization. Description.
A Matrix Organization is an organization structure that is matrix-shaped. It has 2 axes, rather than a pyramid-shape. The vertical hierarchy is overlaid by some form of lateral authority, influence, or communication and there are dual lines of authority, responsibility, and accountability that violate the traditional "one-boss" or "Unity of Command" (Fayol) principle of management.
Typically, but not necessarily, it has product groups on the vertical axis and Strategic Business Units on the horizontal axis.
Teams of functional personnel (e.g., manufacturing, research and development, finance, and sales) report to a manager with profit responsibility bearing a title such as business manager, category manager, or new product manager. The functional personnel also report to their functional bosses, who are responsible for maintaining the quality of functional performance.
The Matrix Organization is at the center of a continuum between purely functional type organizations and purely product type organizations. On the functional end of this continuum is the traditional hierarchical structure divided along functional, lines such as marketing, production, and accounting. On the other end of this continuum is the pure product organization. Here, a separate team is formed, duplicating the functional structure but organized under a product manager. Forum
 Comment on this PageCompare also: Organization Chart | Hierarchical Organization | Organizational Configurations |
| Return to Management Hub: Change & Organization
More on Management | Return to Management Dictionary | |
|
End of description Matrix Organization. An explanation. |
|
|
|
|
| ● Karl (Deutschland) | Multinational Firms | "One application of the matrix organization is found in large multinational firms. A global matrix structure can have equally important lines of authority for product groups and geographic divisions. The geographical (national) dispersed activities try to be responsive to their markets, while at the same time the global product groups focus on global efficiencies and coordination." |
|
| ● Bruce (USA) | Conditions for Matrix Organization | "- Pressure for dual focus - Pressure for shared resources - Pressure for high information processing capacity." |
|
| ● (Italy) | Circumstances When a Matrix Organisation is Used | "Matrices are used when you have two competency areas that need to work closely together, and share resources. For example, this happens often in consultancy firms where on one axis you have the subject matter expertise (for example, change management or technology implementation, etc.), and on the other the market expertise (for example, the various industries such as finance, consumer goods, retail, etc.). Matrices are also used in organizations where work is often performed through projects. So you find on one axis each project and on the other the various functional areas it must go through to completion (sales, account management, product development, etc.)." |
|
| ● (Philippines) | Matrix Organization for Market Segment Focus | "A matrix organization is needed when market segment or customer focus is needed. The requirements of the customer may need the attention of the organization with regards to product specifications and requirements. Its also needed for a quick or faster response to industry specific complaints and queries. The technical requirements for the products could be so proprietary. In applying this matrix organization certain members of the organization and some resources may need to be dedicated to a market segment, a product or a customer." | |
| ● (Malaysia) | Challenges of the Matrix Organisation | "The Matrix Organisation (MO) is common in a cross boundary organisation setting where senior management have responsibility and accountability across some few companies with geographical spread. The MO is OK but problems set in during performance evaluation time. The issue is often "Who does my performance Evaluation and how am going to be given the performance rating that reflects accurately my job accountability to more than one Boss. To be fair to the employee, the reporting relationship and management aspects like performance evaluation, should be clearly addressed at the outset of the evaluation period. Cheers Jeswan." | |
| ● (Australia) | Matrix Organisational Structure - Great in Theory... | "Practically, this organisational structure has run into many problems, the confusion in reporting and evaluation being just one. The matrix structure amplifies differences in perspectives between the two chains of command, so small issues are often blown well out of proportion and cause conflict. This structure has been successful in concentrated domestic applications however where cross-border management is concerned, differences of time, space, language, & culture have created serious barriers to successful implementation and use of this type of dual-reporting relationship structure." | |
| ● (Canada) | Matrix Organizations Require a Lot of Coordination | "The approach to managing in a matrix organization is profoundly different than in a traditional hierarchy. It requires much more coordination, communication and collaboration. These are all good things, particularly in firms with a heavy "project-focus". I believe that problems emerge when managers don't make the necessary adaptation. They seek to manage within a matrix as they would in a hierarchy. That simply can't work. The idea of one boss, one performance review is a hierarchy paradigm and requires a more creative approach... which is good." | |
| ● (Netherlands) | Whenever Managers and Systems Can Handle Multiple Views on the Same Organization | "The basic answer is simple: the matrix is useful whenever you need continuous attention towards multiple managerial focus areas, such as processes, regions, disciplines, customers, market areas, etc. The complex answer is that senior management, finance, qa and systems also need this multi focus approach. If not, the matrix is crumbling before you even have begun." |
|
| ● (Jordan) | Necessity of MO | "A matrix organization is useful whenever the task requires violating Henry Fayol's principle Unity of Command, such as in projects or committees. Coordinating administrative and technical authority becomes a matter of great priority." |
| ● (Zimbabwe) | Merits and Demerits of Matrix Organisation | "Merits: stimulates interdisciplinary co-operation, develops employee skills, freezes top managers for planning Demerits/risks: create a feeling of anarchy as an employee can not report to two masters at the same time, encourages power struggles, costly to implement, duplication of effort by project teams" |
| ● (Germany) | Effectivity of matrix | "The matrix is an attempt to cope with rising complexity of an organization. It is complex itself thus answering complexity with complexity. It works if the culture is changed accordingly - too often the need for culture change isnīt seen. Yet if there is no complexity ("...one unit of manufacturing process..." / one location / not too complex products and customer - supplier relationship etc.) a matrix probably wouldnīt be appropriate, even might lead to disadvantages." |
| ● Karl (Germany) | Matrix and Bureaucratic Organizations are Large | "Both of these organizations are typically - though not necessarily - large." | |
| ● benbouazza (Morocco) | Hierarchical | "Both Matrix and Bureaucratic Organisations are hierarchical and can not provide an open environment for efficiency and productivity." | |
| ● Anne (Austria) | Supportive for Blaming Behavior | "Both of these organizations help everybody even managers to blame others for their own lack of performance and also help to offer reasons why someone couldnīt take responsibility for a change or an improvement." | |
| ● (Indonesia) | Matrix Management | "The concept or fundamental principle underlying matrix management does not only fly in the face of Fayol's "Unity of Command" but goes all the way back to the Old Testament talking about "man being able to serve only one master, and serve him well" Matt 6:24. I think one other clarification should be considered as well. Traditionally, matrix management is not only found where functional organizations integrate with product organizations, but also when functional organizations integrate with project centric organizations. I think there should be a link between matrix management and project management groups. BR, Dr. PDG, Jakarta" | |
| ● Samuel Nduati Mbugua (Kenya) | Team Building and Matrix Organization | "The Matrix Organization is a very good organizational structure for organizations using a combination of functional and product method of departmentalization. However, it is difficult for authority, responsibility and accountability to be defined and assigned to any single position. This leads to confusion and is a cause of problems the consequences of which are organizational politics. These problems can be addressed in the matrix organizational structure, if team building and promotion of team spirit is taken as one of the core values of the organization. This will make the employees work as one team and be responsible and accountable for the results of the organization." | |
| ● Vincent Hart (USA) | Matrix vs. Bureaucratic | "This is a false dichotomy. Matrixed organizations tend to have the same problems as bureaucratic organizations, regardless of size. Unity of command is readily maintained with clear communication protocols in advance of competing business needs and clear vision from leadership. Protocols are only deemed bureaucratic when they conflict with or impede an authorized role or responsibility. This is found in any organization, matrixed or other. Effective leadership equates to organizational effectiveness, regardless of the systems or protocols put in place to maintain objectives." | |
| ● Dan Corbett (Canada) | Alignment on goals and actions | "Whether you have a hierarchial organization or a matrix organization, the critical point is to have alignment on goals and actions. Ask yourself: If the organization was designed from a customer or client perspective, what would have to change from how the organization is currently structured?" |
