Organizational structure is a model of the relationship between positions and people in this organization.
Organizational structure is a set of various dependencies (for example, functional, hierarchical) between the individual elements (such as organizational positions, cells, units) of organizations that allow you to manage it. The essence of the OS is the correct connection of goals and objectives with people and ways to influence them in work processes, that is, the creation of certain parts in an organization, and then their combination to more effectively manage them.
The matrix structure is one of the most popular structures for complex organizations, which are characterized by a focus on project activities.
The matrix structure is characterized by a departure from the traditional assumption that the formal organizational structure as a whole should be a constant and unchanging system. In this structure, it was possible to combine the positive features of regular linear structures with the properties of the structure.
Concept
The matrix form of management organization refers to one of the forms of organizational structures of the enterprise, which are quite widespread in modern conditions. It is based on overlapping two merger criteria. Functional departments form the basis for creating the matrix. After determining them, sets of groups are selected and applied. Depending on the profile of the enterprise, the main criterion for distinguishing the previously mentioned groups is the manufacture or temporary department engaged in a specific task.
This type of structure is associated with the mathematical concept of a matrix, that is, a rectangular array of real numbers, characterized by a combination of columns and rows.
In a matrix structure, columns are equivalent to constant repeating functions. Each matrix element has 2 decision centers - a function manager and a task manager. Its advantages are flexibility and openness to changes in the environment, increasing the manager's responsibility for the project, improving the flow of information and the ability for employees to increase their creative potential.
This type of organizational structure was introduced in the sixties in the aerospace industry. The leading role in the application of this structure was played by NASA. The structure of the array is most often built around problems or projects in the implementation of which the organization is involved. They are generally recognized in the rows of the matrix. The columns of the matrix are analogues of constant, repeating functions.
Application possibilities
The matrix structure is used if it is necessary to carry out certain special measures that require the appointment of project teams in the enterprise management system. Members of these groups are employees of permanent organizational units of the structure.
Attachment of employees can occur in the following cases:
- complete disconnection from the source cell (department) for the duration of the task (project) of the enterprise and full submission to the manager of the designated project team (we are talking about the so-called project teams);
- double subordination of employees: both to the head of the unit of the main cell and to the head of the team (such a solution corresponds to typical matrix structures).
Each employee, which is one of the links in the structure of the array, is a member of the design team, as well as the functional department. The result of this bipartisan affiliation is the fact that there are several leaders. A matrix organizational structure is a rather complicated undertaking. Not every company can implement it effectively. The application of this structure can lead to many phenomena, both positive and negative, in the organization.
Benefits
Among the positive characteristics of the use of the matrix structure can be identified:
- creation of conditions for interdisciplinary work;
- promoting collaboration skills;
- flexibility;
- Promoting high employee identification with goals;
- creation of independent management and coordination mechanisms;
- contributing to the occurrence of the phenomenon of synergy;
- liberation of the creative potential of employees;
- the possibility of a comprehensive focus on a detailed problem;
- greater openness and flexibility in adapting to changes in the environment;
- increasing the responsibility of the coordinating manager for the enterprise by expanding its competencies throughout the project implementation cycle;
- improving the flow of information.
disadvantages
Among the negative characteristics of the use of the matrix structure can be identified:
- high management cost;
- the possibility of anarchy;
- increasing the time for completing tasks;
- violation of the principle of unity of command and the possibility of disputes about competence between the function managers and project coordinators;
- lack of understanding and trust on the part of function managers and project managers;
- makes rather high demands on managers and subordinates, which causes difficulties in filling out working groups;
- uncertainty and threat accompanying the team leader and participants in the project management mechanism;
- overloading project managers with ongoing coordination issues.
Structure Features
The matrix structure is recommended as modern because of the ease with which the organization working in the matrix system is able to respond to changing environmental conditions. This type of structure is built on the principle of two-dimensional grouping: columns are equivalent to constant repeating functions, and lines represent unusual, periodically changing tasks, products, projects.
If the organization carries out several separate tasks (projects) at the same time, the teams performing them act as if “transversely” to the traditional “personnel-line” structure, creating a matrix of tasks and functions.
Each element of the matrix — a position or an organizational unit — is two decision centers: a function manager and a task (project) manager. Both systems intersect as a result of the penetration of the old division into functions with the new division by projects. This leads to the transfer of information and coordination of work in a horizontal arrangement, and unloading usually overloads the vertical channels (hierarchical division of functions).
In the matrix structure, using two overlapping grouping rules, there are such structural features of enterprise management as:
- high degree of specialization of a professional type;
- deep decentralization;
- a small degree of formalization.
Matrix structure in practice
The world-famous American automobile concern Ford used the array approach to create one of the most popular models, namely the Ford Focus. The group created for this purpose was called the "team of tricks", including its members included engineers, designers, marketing and production specialists. Organization of the work of the head was carried out by experts from other areas of the company. Thanks to the implementation of this structure and the gathering of specialists, the project to create a new model was successful at least a year earlier than could have been achieved using the previous approach implemented by the company.
The matrix structure is also used in the following companies: Prudential, General Motors, NCR, American Cyanamid, as well as Manhattan Bank. However, the matrix structure, despite all the efforts associated with the implementation and attempted implementation, was not used in companies such as Philips or Citibank. The above situation assumes that the matrix structure is not a universal structure suitable for implementation in any enterprise.
Matrix structure example
The figure below shows an example of a matrix control structure and a diagram of the relationships within it.
As can be seen from the figure, the structure contains both the principle of functional and design separation of subordination relationships.
The head of the company within this structure has several deputy. directors in the areas of marketing, R&D, production, economics and finance, technical department. In different companies, this list may be different. Each of the data deputy. Directors bear their functional responsibilities for the profile.
In the subordination of each of them you can see the functional employees. If we take the personnel department, then the HR manager will be subordinate to the deputy personnel manager. If we take the marketing assistant, then the marketer will be subordinate, etc.
The HR manager fulfills his functional duties in the field of personnel work, but at the same time he also has one more project manager (not only functional). This employee submits and executes the orders of his project manager, to whom he was attached. This reveals the essence of the double subordination scheme.
Similarly, you can take the example of a procurement specialist. On the one hand, within the organizational structure, he submits to his head of the procurement department, on the other hand, participating in the project, he submits to the project manager in fulfilling the procurement function.
When to apply matrix structure?
The matrix control structure and the scheme of its application is possible in the following situations:
- When the external environment of the enterprise exerts strong pressure on it, for example, in the case of high competition in the market. Thanks to the adoption of comprehensive measures of all cells of the array structure, it is possible to quickly and effectively attract the attention of consumers.
- In a situation where an enterprise processes countless data and information. The application of this structure greatly facilitates the distribution of responsibilities and coordination of tasks.
- If the resources in which the organization is located are limited, the matrix structure is a saving solution. Due to the use of limited resources, for example, production specialists, not only the department producing products A can be used, but also the department producing products B.
Despite the difficulties associated with the creation of an active array structure, it operates in enterprises and often contributes to the success and acceleration of project implementation deadlines.
The basic principles of formation
In the matrix control structure and the scheme of its formation, two distinct parts are distinguished: fixed and variable. The fixed part consists of organizational units characteristic of the personnel structure (general administration), while the variable part consists of groups of employees appointed to fulfill a specific obligation (project). After completion of this project, these teams are disconnected and can be recreated depending on the needs of the institution.
Thus, the variable part of the structure includes organizational positions or sets of posts created from attached employees as part of the functions that make up the production process (for example, research and development, planning, procurement, production, sales) for the implementation of individual projects. Depending on the type of enterprise, project managers and other employees of industry units are appointed. The fixed part of this structure consists of typical auxiliary organizational units (e.g., personnel, finance, accounting, etc.) necessary for the efficient management of institutions.
The matrix control structure and the scheme of its structure are a matrix in which the columns are a functional hierarchy, and the rows of links are a technical hierarchy. Thus, executive cells (departments) are subordinate to the functional manager in the vertical system, whereas in the horizontal system they depend on the project coordinators.
The name of the matrix structure is derived from mathematics: in science, the term “matrix” refers to a rectangular array of real numbers, which characterizes the feedback of rows and columns. Together, this creates a matrix that defines the relationship between row elements and columns.
In a matrix organizational structure chart, rows usually mean unusual, periodically changing subject-matter endeavors, while columns are equivalent to constant, repetitive functions performed by staff groups. If several or a dozen serious projects are carried out simultaneously, then the teams performing these works act as if “crosswise” of the traditional personnel-line structure, creating a matrix of object-functional tasks. A characteristic feature of the matrix structure is the departure from the principle of sole management.
Conclusion
The matrix structure can be considered as a universal solution, especially in those institutions where complex individual tasks are performed, requiring coordination and cooperation of specialists from various industries. Therefore, the matrix structure is especially useful in scientific and research institutes, design bureaus, research centers, etc. Currently, such a structure is also used in many large institutions (holdings, corporations), as well as in organizational consulting companies and advertising agencies. The matrix structure is flexible and provides interaction between people at all levels of organization management.