This article is a discussion of the characteristics of matrix organizations. It includes the environmental conditions which contribute to this complex organizational design. It also identifies the skills needed to successfully work in and manage a matrix organization.
A matrix design is used when two sectors of the external environment demand management attention. For example technology and customer service are two sectors that might require attention and contribute to a matrix design. “Organizations also move to a matrix form after other organizations in their region or industry have adopted it” (Champoux, p. 387). This design rejects the long-standing grid like organizational design and at times, it uses multiple authority structures. In doing so, it requires many people to report to two managers. One is a functional area manager and the other is a project manager. This multiple reporting relationship between employees and managers is common to the matrix design.
A matrix design may be chosen under the following conditions:
- Pressures from dual focus.
- High uncertainty within the sectors of the external environment. Fast changing paces create the uncertainty.
- Constraints on human and physical resources.
Matrix organizations place high demands on the skills of their managers (p. 388). There is high conflict potential. These organizations demand high levels of coordination, cooperation and communication. People often work in groups or teams. The strength of this type of organization comes from responsiveness, flexibility, and efficient use of costly resources along with high levels of human motivation and involvement. The weakness is ambiguity and struggles for dominance in the power structure.
