Matrix Organisation Structure - Essay Example

Davis and Lawrence (1977) had defined matrix as, ‘any organisation that employs a multiple command system that includes not only a multiple command structure but also related support mechanisms and an associated organisational culture and behaviour patterns’ (qtd. by Miner, 2007; p.254). Such structure is adopted by organisations involved in complex nature of business or operations. For example, armed forces, construction industries, management consulting firms etc adopt matrix organisational structures.

Matrix organisational structures are said to have evolved many decades ago; and the most quotable example is the result of President John F Kennedy demand that stated, ‘a man on the moon within ten years’ (Norton, 2007; p.82). As shown in the figure, under each function, managers responsible for various functions simultaneously report to the functional head as well as a project manager. Each project manager is responsible for similar or specific activities carried out in each function. So, this is two-dimensional role for project managers as well as managers of specific function.

It is generally opined that matrix structures are easier to be implemented in smaller organisations, but many large organisations have successfully adopted matrix organisational structures across the globe; few examples include Microsoft, Intel, BMW, Procter & Gamble (Galbraith, 2008). Galbraith asserts that matrix runs on social capital, personal networks and reasonable levels of trust (2008; p.209). Factors that impact success of matrix structure include organisational culture, leadership, communication, planning and coordination, and even HR practices.

Huffmire and Holmes (2006) quote Intel as a perfect example stating, ‘Intel has a matrix organisation structure on top of a divisional on top of a functional organisation structure, yet it works, because Intel has a culture of excellent team work (p.64). Secondly, strong leadership at the top of matrix structure is extremely important because the most common issue that surfaces matrix structure include conflicting interests and approaches by equally competent and expert personnel. Leaders should be able to build trust and gain acceptance by all team members.

Leaders’ knowledge and expertise are required for providing training and infrastructure to sustain the matrix. Leaders’ role is crucial in managing power distribution and goal and role clarity. Role of communication in matrix structure is at various levels such as formal and informal communication as well as cross-functional coordination. For example, BMW adopts cross-functional career development practices that facilitate movement of people upwards and lateral in order to improve their interpersonal network and informal communication (Galbraith, 2008).

From planning and coordination perspective, matrix structures require alignment of goals of different functions with organisational goals. To achieve this, matrix organisations follow a joint goal setting processes and effective joint planning activities. In matrix organisations, all human resource practices foster team working culture, as seen in Goldman Sachs (Galbraith, 2008). Matrix organisation