Matrix organization, matrix structure, contingency theory, organization design. The global matrix structure might consist of product divisions intersecting with various geographical areas or functional divisions fig. International organizational structures with diagram. The helix is perhaps best understood in the context of matrix organizations. Pdf many organizations, both public and private, are changing their. The identifying feature of a matrix organization is that some managers report to two bosses rather than to the traditional single boss. The challenge for managers is to design an organizational structure that allows employees to work effectively and efficiently. The matrix structure gives the best of the both worlds of functional and divisional structures. The matrix organization is the structure uniting these other organizational structures to give them balance. Function key terms departme ntalization the grouping of related functions into manage able units to achieve the objectives of the enterprise in the most efficient and effective manner. While there is a project manager assigned to a project, he or she acts purely as a coordinator of projectrelated tasks. In response to a merger, duplicate departments need to be merged or eliminated, and at least some employees from both companies will either transfer to new positions or leave the company. Usually, there are two chains of command, where project team members have two bosses or managers.
Best practices in matrix organizational structures gssa georgia. Nothing in business is perfect, and all organizational structures involve tradeoffs. When it comes to matrix structure, the organization places the employees based on the function and the product. The matrix structure superimposes the product structure laterally over the functional structure recommended reading. In a matrix structure, reporting channels form a grid, and employees typically report to both a functional manager as well as a product manager. An organizational structure refers to the levels of hierarchy, chain of command, management systems and job structures and roles. Matrix organizational structure, culture and commitment. The result is creation of dual line of authority that is balanced by top managers.
The matrix organizational structure is a combination of two or more types of organizational structures. The matrix structure offers organizations an effective system for managing projects. Many firms have adopted a matrix organization mo structure to utilize the. Matrix organization, matrix structure, contingency theory, organization design, junctions. Look for pockets of opportunity where there is a need to combine local accountability with the benefits of centralized capabilities and resources. Matrix organization designs how to combine functional and project. If, for example, the functional structure is adopted, projects fall behind. The fundamental difference between effective and less effective matrix organizations is whether the tension between different perspectives is creative or destructive. In practice, managers are trying to merge processes and organizational structures in. But it also involves much complexity and demands much communication so that all organizational managersparticularly the project and the functionalcan effectively and efficiently work together. That process is important and serves many purposes see exhibit 51. In many organizations, a combination of these forms is used. Matrix structures combine the benefits of traditional functional and product. A typical feature of this organizational structure is to have employees reporting to two managers.
In this type of an organization, the company uses teams to complete tasks. Reframing innovation activities for a matrix organization ijikm. Part 3 organizing chapter 5 organizational structure and. Organizational structure types bureaucratic structures. Pdf how to get the matrix organization to work researchgate. If youre implementing a matrix at your company, start small, learn, and finetune as you progress. With a matrix organization, you can combine the two. Pdf characteristics of matrix structures, and their. Recall from chapter 1 that organizing is defined as the process of creating an organization s structure. Each form of organizational design has its own set of advantages and disadvantages. Characteristics of matrix structures, and their effects on project success article pdf available in south african journal of industrial engineering 261. What is a matrix organizational technique and how to.
Beyond matrix organization, the helix organization mckinsey. We are overreliant on the same management tools for organization structure. How to change organizational structure due to a merger. A matrix organisation combines traditional functional hierarchy i.