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In a highly centralized structure, decisions are made by a few executives or managers and flow downward through the enterprise. However, as organizations grow in scope and complexity, they need to be flexible in the extent to which coordination and control are centrally applied. The principle of line-staff organization introduces flexibility into hierarchical lines of authority while trying to preserve a unified command structure.

Workers in a strong matrix are similar to a dedicated team, giving members a clear line of reporting to the project manager while keeping the functional side in the look. In each case, adequate conceptualization by top managers would probably have simplified the organization design and forestalled the layering, which occurred because of power maneuvers. Management can treat this unhealthy state best by rebalancing the matrix so that no manager of one dimension is either too threatened or pushed too hard toward a power goal. Additionally, the matrix structure allows the managerial roles to be changed depending on the company’s needs and its current projects. In some cases, for example, a project manager might play more of a coordinating role.

Advantages of Hybrid Organizational Structures

The project manager will have authority over the administration of the project. For example, the project manager will carry out the work, follow up on the schedule, evaluate performance, etc. The overlapping reporting relationships can lead to power struggles for resources. There may also be delayed reaction time when responding to market changes due to the number of people who have to be involved in the decision. Laura Lohman has taught university arts and humanities courses for over 10 years. She has a PhD in the history of music , MS in Human Resources and Organization Development , and BM in music performance . She holds senior human resources, affirmative action, and project management certifications.

Then, if settling occurs, it should be seen not as a pathology but as a self-adjustment that suggests the organization’s capacity to evolve with growth. The matrix has some difficulty in staying alive at high levels of a corporation, and a corresponding tendency to sink to group and division levels where it thrives. When business declines, the matrix becomes the scapegoat for poor management and is discarded. Aerospace companies were the first to adopt the matrix form, but now companies in many industries and in different fields are adapting different forms of the matrix. You might also consider which resources and tools employees might need to complete the project. Additionally, you may consider addressing any employee misconceptions about what the project entails overall, as well as what tasks they may be responsible for. Acquisitions present exciting growth opportunities – if they’re handled correctly.

Five Approaches to Organizational Design

Companies can implement one of three variations of the matrix organizational structure. You can have a weak, balanced, or strong approach when forming teams. It is not appropriate for a firm that has few products and that operates in relatively stable markets. It often puts employees in the position of being accountable to more than one manager. The global matrix design creates a paradox regarding authority.

It is used by many firms engaged in extracting and processing natural resources, such as the mining and energy industries, because in their case the ability to transfer technical expertise is important. Firms that need to impose uniform standards on all their operations also may adopt this approach.

What is a Matrix Organization?

These product-group managers also must compete to ensure that geographic-group managers emphasize their lines sufficiently. Not only do product groups compete; functional and geographic groups also must compete among themselves to obtain resources held by others in the matrix. Why is the flexible global matrix a popular organizational structure right now? Because formal structures are easier to observe and imitate than informal structures, and it is more of a management mentality than an organizational structure. Because it allows efficiency and simplicity in management levels.

In this case, the company decided to employ the matrix design from the outset in setting up its new operating division at https://online-accounting.net/ a new plant site. Prevention—Most top managers will find it exceedingly difficult to forestall all power struggles.

When did the matrix organization emerge?

Can moving into a matrix lead to the strangulation of the decision process, into endless delays for debate, for clearing with everybody in sight? Will decisions, no matter how well thought through, be made too late to be of use?

This design may not be suitable for product lines undergoing rapid technological change. The global area design results in duplication of resources because each area division must have its own functional specialists, product experts, and, in many cases, production facilities. It makes coordination across areas expensive and discourages global product planning. In a matrix what is the drawback to the global matrix approach? management structure, employees work across a wide variety of projects, and they often require learning or using new skills. Exposure to new job duties and responsibilities can build their professional skills quicker and increase their value with the company. Now that we know when to use matrix organizational structures, when not to use them is pretty easy to define.