Matrix organizational structure

In a traditional hierarchy, people in the company report to just one boss. Usually, there are two chains of comman where project team members have two bosses or managers. Often, one manager handles functional activities and the other is a more traditional project manager. See full list on projectmanager.

They needed fast-track technology applications and required the ability to process great amounts of data in an efficient manner.

An organizational structure was needed to respond quickly to interdisciplinary needs, without upsetting the functional organizational structures already in place. Matrix organizational structures were first developed in the aerospace industry in the U. There are advantages and disadvantages that need to be understood to know if it’s the right one for the organization. A matrix organizational structure is not a one-size-fits-all solution. When working on a large project, a highly hierarchical structure can be an obstacle in the path of moving that process forward successfully.

Instead of trying to find a workaround to a situation that might not have a viable solution , a matrix organization structure provides a new system that can more properly address the complexities of large projects. The problem of having the function and s. According to the PMBOK Guide, the matrix organization is a combination of the projectized and the functional organization structures.

The authority of a functional manager flows vertically downwards, and the influence of the project manager flows sideways. Since these authorities flow downward and sideways, this structure is called a matrix organization structure. Employees may report to many managers in a matrix organization structure. Some from one section may report to one boss while the res.

Strong Matrix Structure 2. These categories are as follows: 1. Balanced Matrix Structure 3. The following are a few advantages of a matrix organization structure : 1. Highly skilled and capable resources can be shared between the functional units and projects, allowing more open communication lines which help in sharing valuable knowledge within the organization. This usually happens in a balanced matrix organization where both bosses have equal authority and power. A conflict may arise between the project manager and the functional manager regarding the authority and power. In a projectized organization, the project manager has all authority and power while in a functional organization, the functional manager has the authority.

In a matrix organization, they both hold power, and this power-sharing change accord. A functional structure separates a company by different functions, such as production, human resources, and sales. Divisional structures divide a company by projects, such as products, customers, or region. What are the characteristics of a matrix organization?

What is an example of a matrix organization?

Employees in a matrix organization generally report to both a product or project manager as well as a functional manager (department head). There are separate chains of command and employees are generally accountable to more than one. Eighty-four percent of the US employees Gallup surveyed were matrixed to some extent. Forty-nine percent served on multiple teams some days (we categorized them as slightly matrixed), and percent served on multiple teams every workday but with different people, though mostly reporting to the same manager (matrixed). The remaining percent reported to different managers in their work with different teams (supermatrixed).

Most employees in matrixed organizations, according to the survey, ar. Beneath the surface, we found some areas (particularly collaboration) where matrixed organizations performed better than less matrixed ones and others (related to role clarity) where they did worse. The differences in engagement at more and less matrixed organizations suggest advantages and disadvantages that may cancel one another out.

A key area of strength for matrixed organizations lies in collaboration—a heartening discovery, since cross-company teamwork is one of the chief aims of many m. Interestingly, role clarity and related accountability practices emerge as among the most important drivers of organizational health, and ultimately performance, in McKinsey research based on the Organizational Health Index (OHI). McKinsey has consistently found that improving role clarity improves accountability, an outcome that is a critical component of the overall health-index score. In fact, organizations with high accountability scores have a percent probability of achieving top-quar.

Given the importance of role clarity and accountability to organizational health an ultimately, performance, addressing the role ambiguity that pervades matrixed companies is a critical priority for their leaders, who should help employees by continually setting clear expectations aligned with the direction of the business. This clarity should cascade into frequent conversations between managers and their direct reports about the specific role eachperson plays in advancing the company’s obj. Collaboration between different departments. Perhaps the biggest advantage of a matrix structure is that is brings.

Combines project and functional management structures. In other words, employees have dual reporting relationship - generally to both a functional leader and the product leader. Matrix Organizational Structure. The matrix structure combines the project management structure.

A Matrix Organizational Structure divides the workforce by project or product. While employees are divided among projects and products, they also report to a functional manager. Last, the matrix structure is notorious for frequently obscuring lines of accountability, so leaders and managers should ensure that all employees understand whom they answer to and the duties for which they are responsible. It must be reinforced by matrix systems such as dual control and evaluation systems, by leaders who operate comfortably with lateral decision.

In the matrix structure , employees may report to two or more bosses depending on the situation or project.