Matrix Organization

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What is a Matrix Organization? Meaning.

A matrix organizational structure depends on both vertical and horizontal authority and flow of communication (hence the term: 'matrix'). The traditional hierarchical, vertical structure is complemented by a horizontal structure.

The Matrix Organization (MO) 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.

Typical for MOs are their dual (or even multiple) command structures.

Employees must deal with dual lines of authority (violating the traditional "one-boss" or "Unity of Command" (Fayol) principle of management), dual sources of reward and punishment, dual reporting and communication channels, shared responsibility and accountability. This means working in a matrix structure from an employee's perspective can be quite challenging and even tricky; for one has to use all his / her interpersonal, social, and relational skills to manage multiple bosses.

MOs require extensive and very effective communication systems and can result in higher overhead because they create more management positions.

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 MO 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.

The MO was described by Jay R. Galbraith in a 1971 article called "MO Designs".

Forum Forum about Matrix Organizations. Below you can ask a question about this topic, share your experiences, report a new development, or explain something. Start a new topic about Matrix Organizations Share your knowledge here (or ask a question)   Advantages of a Matrix Organization 1. Individuals can be chosen according to the needs of the projects. 2. The use of project teams which are dynamic and able to view problems in different way as specialists have been brought together... 14   1 comments Disadvantages of a Matrix Organization 1. A conflict to loyalty between the line manager and project managers over the allocations of resources. 2. Projects can be difficult to monitor if teams have a lot of independence. 3. Cost can inc... 13   1 comments Matrix Organization Effectivity In a manufacturing unit, in how far the matrix organization is effective more specifically if the organization has only one unit of manufacturing process having a strength of 600 manpower?... 8   1 comments Public Matrix Organizations Is it possible to place public or governmental organizations (for example the Police) into a matrix organization? Who can share some experiences whether good or bad? Thanks...... 5   Complexity of the Matrix Organisation (MO) With globalisation and cross boundary responsibilities of managers, matrix organisation management becomes more of a reality. Managers often have direct reports in different geographical areas. The qu... 5   Matrix and Virtual Organizations What similarities exist between matrix organizations and virtual organizations?... 4   🔥 NEW What are Alternatives for a Matrix Organization? The discussions here raise the issue: if an organisation is embarking on several ongoing development programmes at one time, if programme management is not achieved via a matrix structure, then what i... 2   2 comments What is a Matrix Organization? Definition Any organization with a multiple command system whereby an employee might be accountable to one superior for overall performance as well as to one or more other superiors for specific projects. Matri... 0   Similarities with Bureaucratic Organization? What are similarities between a matrix organization and a bureaucratic organization?... 0   7 comments Unity of Command in Matrix Organization In the present scenario wherein many organizations prefer matrix reporting especially when teams are distributed geographically, how can the aspect of "unity of command" be balanced? Any thoughts / ex... -2

Best Practices The best, top-rated topics about Matrix Organizations. Here you will find the most valuable ideas and practical suggestions. When Matrix Organization? Under what circumstances would a matrix organization be the most appropriate structure? Why?... 16   9 comments

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