Understanding Matrix Structures

Businesses are facing a dichotomy between wanting to chalk out an all-time structure and strategy for their organization, and recognizing that their world is in a constant state of flux [3]. For most of the 20th century they were largely focused on the static elements of this dichotomy. However, in the last decade changes have become more frequent and more dramatic, so much so that a whole branch of management is now devoted to the subject of change itself.

Matrix organizational structures combine the characteristics of a functional and divisional organizational structure. The matrix organizational structure works more like a team. Instead of department heads, each team has a leader. Matrix organizational structures bring together employees who focus on a project, but fill different roles from across your business. The matrix organizational structure has the most decentralization, which means it can confuse employees about who is in charge. The matrix organizational structure is appropriate if your business operates on an international level, or serves different geographic regions.

State Street is a matrix structure which means that: the company structure in which the reportage relations are settled as a grid, or matrix, rather than in the old-style hierarchy. In other words, staffs have double broadcasting relationships - usually to both a practical manager and a product

Akin, G., Dunford, R. & Palmer, I., (2006). Managing organizational change: a multiple perspectives approach, 1e. The McGraw-Hill Companies, Inc.

Encyclopedia of Business, 2nd ed. (2003). Managing Organizational Change. Encyclopedia of Business, 2nd ed., 1-6.

Further, organizations demonstrate agility by changing structure or processes. Underlying patterns of thinking regarding relationships, information sharing, and behaviors manifest structures and processes.

Week 3, the lecture on Managing Change describes organizational changes that occur when a company makes a shift from its current state to some preferred future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to decrease employee resistance and cost to the organization while concurrently expanding the effectiveness of the change effort. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Students of organizational change identify areas of change in order to analyze them. A manager trying to implement a change, no matter how small, should expect to encounter some resistance from within the organization.

The case study, “Beijing EAPS Consulting, Inc.” in the Custom Book, (2011), reveals many advantages and disadvantages to this matrix organizational structure. For instance, the project manager, Ms. Song, and the departmental manager, Mr. Yang, are having a problem deciding who makes the final decisions on work to be completed because they are the same level in the management structure. Ms. Song feels like she does not have the authority to give direction to Mr. Yang’s employees. She is also wary about asking Mr. Yang to give his employees work from her because of his temperament. The loud and abrasive attitude of Mr. Yang represents the rational personality type. A rational trait is more forceful and can get angry quickly. (Lewis, 2003) Mr. Yang knows he has this type of personality; however, he does not do anything to curve this problem when he notices that Ms. Song is not communicating with him. Also, the employees do not know which manager to listen to or how to prioritize their work at hand. This causes more conflict between the employees, the project manager and departmental managers. In addition, these employees are not sure if the project manager or the department manager is their direct supervisor. This in turn causes conflict between both managers.

Interrelation improve employee’s skills as the get knowledge from other functions. Produced quality work as

Finally, one organisational response to change is that organisational forms are themselves evolving. Therefore, the change management response will

In order to survive and prosper in a rapid changing environment of business world, organization is often required to generate fast response to changes (French, Bell & Zawacki, 2005). Change management means to plan, initiate, realize, control, and finally stabilize change processes on both, corporate and personal level. Change may cover such diverse problems as for example strategic direction or personal development programs for staffs. In this

As seen from figure 2, the matrix organisational structure is complex and aligns functional and divisional organisational structures merged into a hierarchical structure. The student observes that with this comes the potential to on the one hand, improve interdepartmental collaboration through avoiding silo-functioning and yet, on the other hand, blur the unity of command structure in an organisation that can be counterproductive. A critical analysis of two major advantages and disadvantages of this organisational structure here

Aside from educating a manager through formal training in managing an organization through change, there are many ongoing activities that will increase a manager's awareness and aid them in supporting a more complex organizational structure as it develops. A company's organizational structure is a road map of its communication patterns. A well-designed structure can also make it easier to identify inefficiencies and new problems as the organization grows. Reviewing the organizational structure on a regular basis will help ensure that the organization set up for optimal growth well into

For any business in the rapidly evolving world of business, planning and implementing successful organizational change is indispensable. Essentially, organizational change refers to a process whereby an organization strives to optimize performance in order to achieve its ideal state characterized by high performance and profitability (Côté & Mayhew, 2014). Any business would be more likely to lose its competitive edge, as well as fail to meet the demands of its loyal consumers if it doesn’t plan and implement change. Weiss (2012) emphasizes that all organizations ought to embrace change, and it’s imperative to note that successful organizational change doesn’t involve simple process of adjustments; instead it requires appropriate change management capabilities.

Over the past decades, organizational changes have become recurrent. It then became decisive for managers to perfectly understand this phenomenon in order to lead organizations to efficiency.