Problems of Matrix Organizations

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Problems of Matrix Organizations
Executive Summary
What is a Matrix?
oMatrix 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
oWhen it’s highly responsive to two functions at the same time. oWhen there’s uncertainties generating high information processing requirements. oWhen 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: oThe Top Manager who heads up and balances the dual chain of command, oThe Matrix bosses who share subordinates –These Roles are Usually Functional-, oAnd 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: oTendencies Toward Anarchy – a formless state of confusion where people do not recognize a “Boss” to whom they feel responsible. oPower Struggles – in a Matrix, managers become encouraged fight for power. oSevere Groupities – The mistaken belief that matrix management is the same as group decision making. oCollapse During Economic Crunch –...
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