Question

Why is a global matrix design of corporate structures almost always transitional in nature

Answer 1

Organizations with hierarchical structures are easily graphed and defined. Often described as "tree structures," they are unambiguous and relatively permanent organizational models, in which each element in the organization reports to a higher element and concludes with the CEO or Board of Directors at the top. A matrix organizational structure, by contrast, is everything that a hierarchical structure is not. There are separate chains of command and employees are generally accountable to more than one boss.

What is a Matrix design or Structure?

A well-known feature of this hierarchical model is that everyone in the organization reports to a single boss. The matrix structure is different in striking ways:

• Employees are generally accountable to more than one boss
• There are usually two separate chains of command
• The matrix structure is designed to be partially impermanent
• There are two kinds of managers: functional managers and project managers
• Managerial roles are fluid, not fixed
• The balance of power between functional and project managers isn't organizationally defined

The Origins of Matrix Organizational Structures

Matrix structures evolved in response to the rise of large-scale projects in contemporary organizations. These projects required rapid infusions of technological know-how and efficient processing of very large amounts of information. Older organizational structures proved to be ill-equipped to deal with these very projects within the necessary time limits. What these large projects called for was an organizational structure that could respond quickly to interdisciplinary needs without disrupting existing functional organizational structures.

Advantages of Matrix Structures

Because matrix structures retain an organization's functional structure, they allow for the rapid creation of efficient large-scale, project structures that employ many members of the organization's functional structure but without disrupting or destroying the structure in the process.

Because the two organizations have different timelines – one relatively permanent, the other designed to expire with the completion of the project – the kinds of managerial discontent that can arise when a sub-unit in an organization "steals" employees to work on a project is muted. In ideal matrix structures, the two structures share resources equally without territorial struggles, because as each functional manager knows, the project structure will eventually dissolve. Other advantages of matrix structures noted in one of the seminal academic studies of these structures are:

• Clear articulation of project objectives
• Workable way of integrating project objectives with functional objectives
• Efficient use of limited human resources
• Rapid (often interdisciplinary) information flow through the project
• Retention of expert teams through the life of the project
• Rapid dispersion of team members back into the functional organization upon project completion without organizational disruption
• Project management trains managers to become leaders in the functional organization
• Project structures develop team spirit and high morale
• Possibility of conflicts arising during the project carrying over to functional management

Due to these factors and advantages matrix design of corporate structures always transitional in nature.