The Advantages of Matrix Organizational Structure
Early organizations divided companies into departments such as production, marketing or personnel. While simple to understand, this structure provided challenges in terms of inefficiencies, lack of communication across functions and sometimes interdepartmental conflicts. Since the 1970s, in an attempt to eliminate some problems associated with traditional organizations and allow them to become more agile, matrix-style organizations, which group individuals with similar skills together, have developed. These matrix style organizations have proven to be an especially suitable approach for project-centered organizations.
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Dynamic View of Problems
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One advantage of a matrix-style organization is that the degree of specialization that occurs can increase the depth of knowledge available to the organization. With specialists grouped together, a better sharing of information is a likely result, lessons learned are shared more broadly, and a broader, more informed view of problems and issues becomes possible.
Agility
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Matrix organizational structures are adopted by companies because they provide for agility in a fast -movng marketplace. They allow companies to leverage resources quickly and get the latest technical information to those who know best how to use it. This type of structure promotes innovation and allows the company to quickly transfer or redeploy resources as needed. A matrix-style organizational structure encourages and develops communication and decision-making skills.
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Management
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In a matrix-style organization, individuals are assigned to projects according to need. Management in a matrix-style organization is different from that in a functional organization. Typically, employees will have responsibilities to more than one manager. For example, an engineer might report to the engineering manager (functional manager) and also be responsible to the manager of project to which the employee is assigned (operational manager). This additional reporting responsibility is known as a "dotted line" reporting responsibility. There are potential problems associated with having multiple "bosses," but this style of management ensures that projects can be managed effectively and works very well if the functional and operational manager have equal authority.
Matrix Forms
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Matrix organizational styles are not all the same. There is no best format. Success depends on selecting the structure best suited to organizational purpose.
In a weak/functional matrix, the project manager has limited authority. The functional managers maintain control over their resources. This works best when projects are undertaken as an "adjunct" to normal operations.
Power is shared equally between the project manager and the functional managers in the balanced/functional matrix. It provides the best aspects of functional and projectized organizations.
In the strong/project matrix, a project manager has primary responsibility. Functional managers assign resources as needed. This is most useful when the organization is focused primarily on projects.
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References
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