Numerous studies have been conducted on the implementation of matrix management and the advantages and problems relating to this type of company structure. The matrix organization is the structure uniting these other organizational structures to give them balance. The reporting structures within a business are impacted by the differences between a matrix. Hence to fulfill this vision nsa has design a new structure. South african journal of industrial engineering may. Organizational structure is the framework a company uses to man its operations. Also in a matrix organization structure employees may report to multiple managers.
Pdf characteristics of matrix structures, and their. What benefits are gained in adopting a matrix approach in. Hospital matrix organizational chart organizational chart. Although all organizations are temporary in that they are constantly changing, the matrix is designed to be temporary and a particular organizational structure lasts. Matrix management is an organizational structure in which some individuals report to more than one supervisor or leader, relationships described as solid line or dotted line reporting. Turner 2 defines a matrix structure as an overlap between a functional hierarchy and a project hierarchy. Pdf characteristics of matrix structures, and their effects on project. The matrix structure cancels out the extremes of the two. Matrix structure the matrix structure superimposes the product structure laterally over the functional structure recommended reading. The organizational structure determines how the organization. Engineering and technology management, university of pretoria. A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation.
Large and multiproject organizations prefer matrix organizational structures where they can relocate employees whenever and wherever their services are needed. Matrix structure when it comes to matrix structure, the organization places the employees based on the function and the product. It is essential to involve both functional and project specialists. This paper investigates the characteristics of matrix structures and their relationships with drivers of project success, such as communication, collaboration, and trust between project team members. Implementing a matrix is a complex process, involving more than just changing the organizational structure, systems, culture, and behaviors over time. This paper investigates the characteristics of matrix structures and their relationships with drivers of project success, such as communication, collaboration, and trust between project team. A matrix is an organizational structure that shares power among two or more dimensions. Pros and cons of 3 project organizational structures. Egelhoff shows that the likelihood of intraorganizational conflict in a matrix structure depends on the groups involved.
Structures help a person understand how a business is designed and how it operates. Hobday mentions14 that the matrix structure is strong in areas where the projectbased structure is inherently weak. Matrix organizational structure in project management. Organizational structure is a powerful determinant of organizational behavior. Use pdf export for high quality prints and svg export for large sharp images or embed your diagrams anywhere with the creately viewer. A matrix organizational structure is one of the most complicated reporting structures a company can implement. This is a type of organizational structure which facilitates a horizontal flow of. Concepts and f0rmats when two or more people work together to achieve a group result, it is an organization. The matrix structure has three distinctive components 1. Because matrix organizational structures have the flexibility of relocating employees when needed. The matrix structure, with its various forms, is an alternative to the functional 2 structure, the projectbased a.
And the distinction between matrix and project is that project structures form around specific finite tasks, such as a construction project, whereas matrix structures tend to. It must be reinforced by matrix systems such as dual control and evaluation systems, by leaders who operate comfortably with lateral. The design get popularity in 1970s and 80s when big companies like ibm. After the objectives of an organization are established, the functions that must be performed are determined. It entails achieving a functional and product or process focus. Best practices in matrix organizational structures gssa georgia. The result is creation of dual line of authority that is balanced by top managers.
Matrix organization is more than a matrix structure. There are three common organizational structures, and project managers work in all of them. The matrix organization structure can deliver this, provided people have the skills to make the matrix work. Though matrix organizational structures have been implemented since the late 1970s, their use is still a matter of some debate. The relationship between matrix management and matrix organization is similar in that matrix management is a more temporary application than matrix organization. What benefits are gained in adopting a matrix approach in terms of organizational structure many businesses develop an hierarchical organizational structure. Larson and gobeli3 define a matrix structure as a mixed organizational form in. Organizational structure and design chapter 5 y ou might not have heard of empire company limited, but youve probably shopped at one of their sobeys, safeway, or iga grocery stores. A matrix type of organisational structure combines the traditional departments seen in functional structures with project teams. An evaluative study of the matrix structure in small public service organizations. Apart from that, in the matrix organizational structure it becomes relatively difficult for the organisation to gauge the employees performance on a particular project. Matrix org chart template editable organizational chart. Advantages and disadvantages of matrix modern organization.
A matrix organisation combines traditional functional hierarchy i. In a matrix structure, individuals work across teams and projects. In fact, many people believe decisions about organizational structure to be the central determinant of. Copy of hospital matrix organizational chartyou can edit this template and create your own diagram. It has been recognized that the matrix organizational structure has applications far beyond that of project program or product management 12. When a matrix organizational structure is implemented within the workplace, then there are crossbusiness, crossfunctional units which are working together. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. She has been very patient with me explaining the complicated organizational structure of the company and she has actively informed and. Creately diagrams can be exported and added to word, ppt powerpoint, excel, visio. Part 3 organizing chapter 5 organizational structure and. While a functional organization structure may be more common in longestablished companies, a matrix organizational structure could benefit startups since its more. The structure groups people and job positions, lays out relationships. The matrix structure has been unsuccessful in many.
Lets take a closer look at this type of organizational structure to determine its pros and cons in project management. The matrix organization structure crossed these two ways of organizing galbraith, 2009. The structure facilitates the horizontal flow of information and skills. What is the difference between matrix and divisional. Matrix organizational structure is often used in project management because it speaks to both the product of the project and the function of the management producing it. In a matrix organization, the traditional departments seen in functional structures combine with project teams. However, in this discussion the matrix will only be considered from the viewpoint of its most highly developed application that of project management.
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