The Matrix Structure

Then, Where the matrix structure is suitable ?

The matrix structure may be very appropriate when organizations conclude neither functional nor divisional forms, even when combined with horizontal linking mechanisms like strategic business units.

The matrix structure is found in an organization or within an SBU when the following three conditions exists: 

• Ideas need to be cross-fertilised across projects or products, 
• Resources are scarce and
• Abilities to process information and to make decisions need to be improved.

The matrix structure considers the functional and product forms combinely together at the same level of the organization.

The product units or projects are usually temporary and act like divisions in that they are differentiated on a product-market basis. 

The matrix structure is also considered as complex designs. It is because it depends upon both vertical and horizontal flows of authority and communication.

On the other hand, functional and divisional structures depend primarily on vertical flows of authority and Communication.

A matrix structure that contribute to overall complexity include dual lines of budget authority, dual sources of reward and punishment, shared authority, dual reporting channels, and a need for an extensive and effective communication system.

Though its complexity, the matrix structure is widely used in many industries, including construction, healthcare, research and defence and so on.

For the effective implementation of matrix structure, organizations need planning, training, clear

mutual understanding of roles and responsibilities, excellent internal communication, and mutual trust and confidence. 

The matrix structure was developed to combine the stability of the functional structure with the flexibility of the product form. The matrix structure is very useful when the external environment is very complex and changeable. 

The matrix structure may cause the problems while revolving duties, authority, and resource allocation.

It may cause when the goals to be achieved are vague, the technology used is poorly understood and a continuous battle for power between product and functional mangers.

Equally, the matrix structure helps in clear understanding of objectives and every person engaged in organisation can know the result of their work.

If you have any queries, please feel free to comment.

Thank You.