A matrix organizational structure is the most difficult to implement. Initially, it was used only in the space industry, in the electronics industry, as well as in the field of high technology. A similar organizational structure has become necessary at other enterprises, as there are changes in industry and other areas of activity.
The matrix organizational structure has two main divisions:
- Product-oriented - responsible for the production of certain types of products. These divisions control the main issues relating to the tactical nature of the manufacture of goods. They are subordinate to the head or his deputy, responsible for production.
- Sales - focused on the sale of products to a segment of consumers or in certain regions. These divisions are controlled by the head or his deputy for marketing.
Both units interact with production departments. For example, sales divisions provide a range of products that need to be manufactured. In turn, production units also provide both divisions with information about their work.
The structure also has functional services that solve various strategic tasks and are subordinate to the head of the company.
The matrix organizational structure has the following advantages:
- The number of levels in the hierarchy of large enterprises is decreasing - there are about five of them.
- The flexibility of the reaction increases when demand for products changes. Thus, the profit of the organization increases.
- The entire technical policy of the company becomes unified.
- The quality of products is increased, which increases the competitiveness of the enterprise in the market.
- Top managers relieve themselves of a number of powers and delegate them to managers.
But such organization management structures have a big drawback. Since the divisions are associated with production, situations arise when disparate orders come from them. In this case, it is necessary at the enterprise to develop detailed instructions for action. But all the same, controversial situations often arise in organizations with a matrix structure. Sometimes they are resolved quite a long time, since each division protects its interests.
The disadvantages of this structure can also include:
- Its bulkiness, complexity and high cost of implementation.
- The tendency towards anarchy is great.
- There is a likelihood of a “war” for power, since the powers are sometimes not strictly stipulated, and the rights and obligations are somewhat “blurred”.
- Large overhead, as a significant number of people work in the organization.
- There is frequent duplication of certain functions.
- Decisions are sometimes made late, as many of them are discussed in a group.
The matrix structure has two directions of leadership. Vertical - includes the management of linear and functional units of the organization. Horizontal - management of individual programs, projects, products.
The matrix organizational structure is distinguished by the fact that several managers function in it. Some manage divisions, others control the implementation of projects. But at the same time, management should strive to maintain a balance between such organizational alternatives.
A distinctive feature of the matrix structure is that all employees of the enterprise have two managers. Moreover, they have absolutely equal rights. That is, the contractor submits to the head of the functional service, as well as to the manager who controls the project. As a result, this should increase the overall performance of the company.