What is the Matrix Organization Model?
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- Опубліковано 30 бер 2021
- Many large multi-national organizations eschew the simplicity of Charles Handy’s Federal Organization model. Instead, they favor the big, complex, and ugly approach that is the Matrix Model.
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The Nature of Organizations: A Management Courses Introduction
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The Nature of Organizations
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This video is part of course module number 6.1.2
Program 6: Managing within Organizations
Course 1: The Nature of Organizations
Section 2: Organizational Models
Other videos in this section include:
🎬 Edgar Schein's Two Organizational Cultures - • What are Edgar Schein'...
🎬 Henry Mintzberg's 4 plus 2 Organizational Types - • Henry Mintzberg's 4 pl...
🎬 Charles Handy's Gods of Management - • What are Charles Handy...
🎬 Charles Handy's Shamrock Organization - • What is Charles Handy'...
🎬 Charles Handy's Federal Organization Model - • What is Charles Handy'...
🎬 Charles Handy's Triple-I Company - • What is Charles Handy'...
🎬 Peter Senge's Learning Organization - • What is Peter Senge's ...
🎬 Adhocracy - • What is the Adhocracy ...
🎬 The Agile Organization - • What is The Agile Orga...
🎬 Brian Robertson's Holacracy - • What is Brian Robertso...
🎬 Virtual Organizations - • What are Virtual Organ...
LESSON NOTES
Most modern organizations adopt elements of the Matrix organization, once they reach a certain size. But, in its full horror, the Matrix Organisation is a real nightmare to navigate.
Bob is the Technical Director of a mid-size UK subsidiary (TechCo) of a global business (MegaCo). TechCo sells and operates across the world alongside other brands within MegaCo’s Services Division.
Before MegaCo acquired TechCo, Bob was one of the TechCo Directors. Together they made decisions about product development, marketing, sales, and support.
Now, Bob is responsible to MegaCo Services Division Technical Director for Product Development. Also to TechCo’s Managing Director, also to Services Division’s Country Leader.
There are at least three dimensions to MegaCo’s matrix:
1. Brand (TechCo) which sits within Product Set (Services Division)
2. Country (UK), which sits within region (EMEA - Europe, Middle East, and Africa)
3. Function (Technical) which sits within the wider Product vertical
Matrix organizations sound like a great solution to the competing demands of different parts of a large organization. But they force the resolution of those competing demands onto each senior and middle manager.
Even when there is a notional ‘primary dimension’, managers still have a reporting line through other dimensions and therefore can rarely avoid the need to make compromises and disappoint senior executives.
The benefit of Matrix Organizations is they avoid over-centralization. The cost is in creating two, three, or more competing centers!
Tom Peters and Robert Waterman dismiss Matrix Organizations in their 1982 book, In Search of Excellence (geni.us/CrE5), as ‘a logistical mess’.
The only way to really make a Matrix Organization work is to give each manager, at every intersection of the matrix, true delegated authority to make the decision that is right at the time. For that to work, each manager needs good quality information at all times, and the ability to assess the situation and make a considered choice.
RECOMMENDED EXERCISE
1. Assess the pros and cons of a highly matrix organizational structure (3 MC CPD Points)
2. To what extent is your organization a matrix organization? How would it improve and what would it lose, if it were to move further in the direction of a fully-matrix structure? (3 MC CPD Points)
3. Compare these pros and cons with those for a Federal Organization • What is Charles Handy'... (2 MC CPD Points)
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Bob is a Director of TechCo - a subsidiary of MegaCo. What does his life look like as part of a Matrix Organization?
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Problems of the Matrix：
The major disadvantage is that the personnel on the project are working for two bosses. In any conflict situation, a person could easily become "the man in the middle." Further conflict problems can be caused by project personnel playing one boss against the other. Also, the other disadvantage of Matrix is Difficulties in Monitoring and Controlling, Complex Information Flow, Fast Reaction Difficult, and Conflicting Guidance. Since there are so many people to be consulted, the project manager in the Matrix usually does not have strong vested authority, so it will slow the process. And the more complex organization with two lines of authority always increases the possibility of conflicting instructions and guidance. A matrix organization with several projects faces real project priorities and resource allocation problems. Each project manager will consider their project to have the highest priority. So it's different to definite which one is the highest priority. There is a constant, although often unperceived, struggle in balancing the goals and objectives of project and functional management because the project manager may emphasize time and cost constraints, while a functional manager may concentrate on technical excellence at the expense of schedules. Because two project managers are competing for resources, there is a potential conflict. Conflict, particularly the role conflict typical of the two-boss situation, can produce stress, anxiety, and reduced job satisfaction. Its need to considerable attention must be directed toward assuring that prospective managers have a high tolerance for conflict situations.
I can only agree with your analysis - the Matrix Organization is hard to make work well and is stressful for its mid-tier managers, who are pulled in many directions. Making it work will require a high degree of organizational maturity and collaborative behavior. Like yours (I expect), my experience is that human nature means matrix organizations are always hard to navigate, and sometimes highly dysfunctional. Yet, somehow, there are examples of organizations of this complexity that still succeed commercially. I can only wonder how much better they could perform with greater clarity of objectives!
Cannot agree with you more. Two or above reporting lines have different requirement and thus personnel conflicts.
Couldn't stop thinking about "The Matrix" and those green falling symbols. Nice video. :)
Are you a 'Red pill' too?
This is a very good presentation
Thank you.
Very useful video. Do you have any videos or thoughts on current best practices for structuring such a complex organization?
Unfortunately, I am not a practitioner. All I know is that matrx organizations introduce many issues. I like the more federal structure, but 'horses for courses'. This series of videos contains descriptions of many different structures. But finding the right one for a given context means understanding both the range of options and the needs of the context.
Nice explanation, thank you but FYI every time I saw that subscribe animation with the click sound I got distracted and I rewatched that part again.
Thank you.
I am sorry of this is intrusive. Unfortunately, to make it viable to produce 2 videos a week, I need to grow the channel, so it can start to generate the revenue I need to cover the 2-days per week investment of my time. And that means it is essential that UA-cam knows that people like my videos.
@@ManagementCourses I agree with you and also thank you for the content. Maybe it wouldnt be so distractive if you remove the arrow animation and click sound. Nothing serious just my opinion :) Thank you!
I have a question :
In a organization , what is the importance and benefits of matrix organization ?
When they work well, matrix structures allow complex lines of authority that give managers a lot of autonomy, but clarity over what they need to do, to balance the needs of different parts of the organization. When they work badly, those managers are simply pulled in different directions with little idea of where their priorities should lie.
Brilliant
Thanks
i played this one 125% speed and I still can't believe how it is paced.
I speak steadily and pause because I know that a large part of my audience does not have English as their first (or even second) language. 1.25x is the right solution.
@@ManagementCourses i appreciate your content :)
@@spencerocean 👍🏻
sounds like Matrix organizational model gives more job opportunities, even if it sounds messy. More jobs = more people working = better conomy. RIght?
I'm not sure that it's true that the Matrix organizational model gives more job opportunities. Nor that more jobs in Matrix organizations is better for the economy. If matrix orgs create jobs, but thereby reduce productivity, that is a waste of human time and effort that could serve the economy better. But, as I say, this is not my area of expertise. You'd need a big data set and a set of economists to make progress on evaluating your assertions.
Subtitles please
Click UA-cam's Settings button (the Gear Wheel) and turn them on. Tada!