Problems of Matrix Organizations
Problems of Matrix Organizations
Executive Summary
• What is a Matrix? o Matrix structure can be identified by a dual chain of command system rather than the traditional single chain of command.
• Reasons why companies adopt a Matrix structure o When it’s highly responsive to two functions at the same time. o When there’s uncertainties generating high information processing requirements. o When there are strong constraints that must be dealt with, such as financial and human resources constraints.
• There are three unique and critical roles in every matrix: o The Top Manager who heads up and balances the dual chain of command, o The Matrix bosses who share subordinates –These Roles are Usually Functional-, o And The Managers who report to two different matrix bosses.
• Early Adopters of Matrix Structure were mostly in the Aerospace industry, but later on it was adopted by other kind of industries such as (chemical, banking, insurance… etc)
• The Good thing about matrix structures is that it provides flexibility and balanced decision making.
• The Bad thing about matrix structures –as GM Management describes it- is that it’s too complicated, difficult and sometimes frustrating form of organization to live with.
• The Ugly thing about matrix structures is that it’s more vulnerable and has a tendency to be severely affected by changes in the organizational environment.
• That’s why when companies are thinking of adopting a matrix, they are advised to take certain precautions and to be familiar of the diagnoses, prevention and treatment of what the article identifies as pathologies, the nine pathologies of a matrix are: o Tendencies Toward Anarchy – a formless state of confusion where people do not recognize a “Boss” to whom they feel responsible. o Power Struggles – in a Matrix, managers become encouraged fight for power. o Severe Groupities – The mistaken belief that matrix management is the same as group decision making. o Collapse During
Executive Summary
• What is a Matrix? o Matrix structure can be identified by a dual chain of command system rather than the traditional single chain of command.
• Reasons why companies adopt a Matrix structure o When it’s highly responsive to two functions at the same time. o When there’s uncertainties generating high information processing requirements. o When there are strong constraints that must be dealt with, such as financial and human resources constraints.
• There are three unique and critical roles in every matrix: o The Top Manager who heads up and balances the dual chain of command, o The Matrix bosses who share subordinates –These Roles are Usually Functional-, o And The Managers who report to two different matrix bosses.
• Early Adopters of Matrix Structure were mostly in the Aerospace industry, but later on it was adopted by other kind of industries such as (chemical, banking, insurance… etc)
• The Good thing about matrix structures is that it provides flexibility and balanced decision making.
• The Bad thing about matrix structures –as GM Management describes it- is that it’s too complicated, difficult and sometimes frustrating form of organization to live with.
• The Ugly thing about matrix structures is that it’s more vulnerable and has a tendency to be severely affected by changes in the organizational environment.
• That’s why when companies are thinking of adopting a matrix, they are advised to take certain precautions and to be familiar of the diagnoses, prevention and treatment of what the article identifies as pathologies, the nine pathologies of a matrix are: o Tendencies Toward Anarchy – a formless state of confusion where people do not recognize a “Boss” to whom they feel responsible. o Power Struggles – in a Matrix, managers become encouraged fight for power. o Severe Groupities – The mistaken belief that matrix management is the same as group decision making. o Collapse During