Matrix Structure

Matrix Structure

Definition

Matrix structure organization structure in which both product division and functional structures (horizontal and vertical) are implemented simultaneously. (2012)

Summary

I believe that the more complex the structure is, the more important the processes are ... the star of the show is the resource allocation process.

By Jay R. Gslbraith

The author discusses the shift toward learning how to make matrix structures work effectively as almost all organizations are multidimensional. He believes that the more complex the structure is, the more important management processes become, and that in a matrix, the resource allocation process is paramount. The author states that the most successful practitioners of matrix are those who have had responsibility on several sides of the structure. But remember, not everyone needs to be in a matrixed reporting relationship to have a matrix mindset. Matrix managers need to make sure that people understand the reasoning behind matrix working and change their behaviors accordingly. He also mentioned one of the reasons that matrix is difficult, is that company need to get all of these other factors aligned. The good news is that the best-aligned organizations will be the best performing organizations. (2013)

Discussion

In my point of view, in the matrix structure, company should achieve coordination necessary to meet dual demands from customers. This structure is good for medium-size company with multiple products. It provides a flexible sharing of human resources across products. It also has a flexible respond to reflect the importance of both the global and the local, the business and the function in the structure, and to respond quickly to changes in markets and priorities.

For those used to working in a traditional linear set-up, adjusting to a matrix structure can take some time and effort. Here is an example I found. At Marriott Hotels India, country head...