Phases of development of matrix structure

Matrix structure diagram is one of the most commonly used reporting structures where a company emphasizes on efficiency, creativity and innovation.

Generally, organisations define their reporting structure either on functions or on product or geography, which is called divisional structure. On the basis of this structure organisations manage their operations.

The matrix structure promotes the horizantal flow of information. It helps the organisation in developing product or project, manage employees and consider very aspect of organisation.

Under this matrix, Employees should report their day to day work done to the respective authority of an organisation.

They shoud also continue to report on their overall performance to the head of their department whose authority flows downwards within his or her department.

We have discussed The matrix structure in our previous article. We shall discuss the Phases for development of matrix structurein this article.

Cross-functional task forces

Temporary cross-functional task forces are initially used when a new product line is being introduced. A project manager is in charge as the key horizontal link but he shall have limited authority. The functional manager has the authority to control the project budget.

Product/brand management: 

Here in this phase, authority is shared among the project managers and functional managers. However, the main role is of the project manager. If the cross-functional task forces become more permanent, then the project manager becomes a product or brand manager and the second phase begins.

In short, in this arrangement, function is still the primary organizational structure, but product or brand managers act as the integrators of semi permanent products or Brands.

Mature matrix:

It is the final step of matrix development and there exists a true dual authority structure. Both the functional and product structures are permanent. All employees are connected to both a vertical functional superior and a horizontal product Manager simultaneously.

Functional and product managers have equal authority and must work well together to resolve problems over resources and priorities. However, the matrix structure is not very popular because of difficulties in implementation and trouble in managing.

Building the matrix structure is not an easy task. However, once built, this structure ensures the eficient utilisation of resources and products, and that the services are coordinated within an organisation. 

Since, this structure promotes the flow of information within whole organisation, employees are well known about their responsibility to achieve organisational goals.

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