Organizations want to do more with fewer resources and use the limited knowledge they have. They have found that the traditional hierarchical management structure is not suitable for their business. Enterprises have turned to the matrix organizational structure for increased information flow between departments and greater flexibility and responsiveness.
Change is more than just rearranging names on an organizational diagram. Chaos and confusion can occur if you don’t shift your leadership perspective and learn the skills necessary to take advantage the matrix’s many reporting lines.
What is Matrix Management?
The traditional management model employs a hierarchical structure. It is based upon the military and centralizes control over the business. Everyone who works in the business follows the chain and knows where they are located in the organizational hierarchy. This organization will help you identify your boss and the team for which you are responsible.
This structure has many benefits. This structure allows for quick strategic decision-making and gives managers more control over the organization. However, hierarchical organizations can be slow to adapt to changing market conditions. This discourages creativity.
Two chains of command form part of a matrix structure. The one is the traditional hierarchy, and the other is a lateral authority. The traditional hierarchy is built on functional lines, while whereas the second is more concerned with individual projects.
A tree chart is a great tool to compare modern and traditional organizations. Each employee can connect to the leaders, their team below, as well as the top.
A table is the best way of representing a matrix organization. It can be used for two dimensions of leadership within an organization. Some enterprises may have additional dimensions. The matrix breaks down the rigid chain of command. The matrix allows employees to report directly and directly to one or more managers.
There are many ways that enterprises can create a matrix structure. Common dimensions are function and product. One dimension of management is responsible for a particular project or product, and the other dimension is the company department, such as sales, accounting, customer service, or accounting.
Other dimensions to be considered are industry specialty and geographic location. Many enterprises use a hybrid structure where the traditional hierarchical structure is used for top leadership and the matrix is used elsewhere in the organization.
Benefits of a Matrix Organization
A matrix organizational structure offers many benefits, including:
Collaboration between Departments
A matrix organization offers the advantage of bringing together the best individuals with the right skills to complete the current task. Experts from all areas of the company can work together to solve a problem or achieve a goal. Project assignments in a matrix structure do not have to be permanent. This allows employees to share their talents with a wider range.
By combining the functional focus with the project focus, companies can keep pace with market demands. It is easier to make decisions when more perspectives are available when team members report directly to different departments. The matrix structure gives teams more autonomy, and removes the need for formal processes. They can also achieve their goals quicker thanks to the matrix structure.
Improved communication between departments
Communication flows from the top of a hierarchical structure. These communications often remain within the functional units. A product vice president communicates to project managers, who then communicate with Softwar.