Define matrix structure. Matrix Organization 2019-03-02

What is a matrix organization? definition and meaning

Reprinted in Cleland and King, Systems, Organizations, Analysis, Management: A Book of Readings, pp. Theoretically, it should be possible to divide the authority and responsibility more or less equally between the project and functional managers, however to do so is difficult and seldom occurs. Matrix is one of that employers may adopt. They report to, for example, a divisional manager, and also have project managers for certain project. Having a strong culture in a work environment can help compensate for weaknesses of the structure. Information of use to other projects is not locked up within a single project. Most small-to-medium sized businesses implement a functional structure.

Matrix structures

In a matrix structure, the employee may report to two different authorities, which allows for more utilization but a more complex operation — for example, a sales employee may report to the manager of Product A, as well as the sales manager. Yet, sometimes the algorithm just tries to minimize a criterion where minimum iterations is not the optimal results. About the Author Murad Abel has more than 15 years of experience in management and consulting. There are pros and cons to every management structure and approach, and this holds true for matrix management. Here, the functional manager controls the project budget. The first boss will be their functional manager and the other often is a project manager.

Different Types of Organizational Structure

The basic unit of the matrix organization Why the Matrix? Effectively, it means that the employees of the organisation have more than one boss! However, the aerospace industry found that it had many more projects which were not particularly large, but were exceedingly complex, and therefore not conveniently handled within a single discipline. The company did not have to change the fundamental functional structure of the whole organization. The benefit of this structure is that needs can be met more rapidly and more specifically, as each division can operate more or less independently for the other divisions in the company. Aerospace companies that wanted government contracts had to develop charts that showed the structure of the project management team that would be in charge of a contract. He then must review the key technical decisions and challenge them if necessary. These projects required rapid infusions of technological know-how and efficient processing of very large amounts of information. The military, for example, is an organization famous for its highly centralized structure, with a long and specific hierarchy of superiors and subordinates.

Matrix management

Very strong top-management support for the project manager is necessary to get the matrix to work, and even very strong support will not guarantee project success. Matrix structure is an organizational structure in business. A matrix organization is defined as one in which there is dual or multiple managerial accountability and responsibility. However, the matrix is a complex organizational form and will not automatically work. Specialists like to work with other specialists in the same discipline, and they will be better able to continually exchange ideas and information. This may mean a considerable change in the way they determine their priorities.

The matrix organization

Organizational structure helps firm meet goals Put simply, it refers to how an organization arranges its staff and jobs so that its work can be performed and its objectives and goals met. The result was increased organizational complexity. In one convention, reading across a row reveals the outputs that the element in that row provides to other elements, and scanning a column reveals the inputs that the element in that column receives from other elements. The matrix falls in the middle of the continuum, and can range from very weak to very strong depending on the relative balance of power. This is an important metric when the economy is not growing or is in the phase of recession. The number of things that can go wrong is endless, but the most usual reason for failure of the matrix results from either foot-dragging or downright sabotage on the part of functional management and even by lower level supervision.

The matrix organization

Matrix management structures are found mainly when there are big projects or product development processes. There are advantages in terms of efficient use of resources across products and communication moving in multiple directions across the organization, but a potential big disadvantage is that employees have to manage competing priorities from two different chains of command. The chart explained how this team was related to the overall management structure of the company. The larger the organization, the more likely it has a divisional structure, which is simpler to manage and gives clearer lines of control. Who Is the Real Boss? The matrix shown in figure 2 represents a general organizational structure.

matrix structure definition

In the matrix, power struggles are a logical derivative of the ambiguity and shared power that has been built purposefully into the design. King, Systems, Organizations, Analysis, Management: A Book of Readings. The project manager has a full-time role, has a full-time project management administrative staff under him, and controls the project budget. The functional structure works very well for small businesses in which each department can rely on the talent and knowledge of its workers and support itself. The balance of power in a strong matrix It is easy to see how the administrative relationships can be used to create a strong matrix.

What Is the Difference Between Matrix and Divisional Structures?

This effort can be extremely valuable in reducing conflict and anxiety within the matrix. Some management styles depend on the persuasive abilities of the manager while others depend on or tend to fall back on strong support from top management. However, there has been a rise in decentralized organizations, as is the case with many technology. The conventional hierarchical management organization could not cope with the added complexity and the enormous amount of information that had to be processed, and conventional management theory was of little help in solving these new and unique problems. There are separate chains of command and employees are generally accountable to more than one boss.