Matrixed organizations

MATRIXED ORGANIZATIONS

1. Matrixed Organization

2. MATRIXED ORGANIZATIONS A company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. Designed to couple the advantages of both the standalone and the functional projects.

3. MATRIXED ORGANIZATIONS In the 1970s, Philips, a Dutch multinational electronics company, set up matrix management with its managers reporting to both a geographical manager and a product division manager. 

4. MATRIXED ORGANIZATION “Strong” Matrix “Weak” Matrix “Balanced” Matrix

5. STRONG MATRIX ORGANIZATION

6. WEAK MATRIX ORGANIZATION

7. BALANCED MATRIX ORGNIZATION

8. ADVANTAGES OF MATRIXED ORGANIZATION The project is the point of emphasis The project has access to entire organization for labor and technology Less anxiety about the end of the project Response to client is rapid Consistent policies Easier to balance organizational resources Flexibility

9. DISADVANTAGES OF MATRIXED ORGANIZATION Functional units make many decisions, including technology ones The set of monitors must be carefully monitored as a set The movement of resources Strong matrices mirror many disadvantages of project structure The division of authority and responsibility for the operating PM in the Matrix management is complex Workers do not have a single manager

10. EXAMPLE OF MATRIXED ORGANIZATIONAL STRUCTURE

11. STARBUCK’S ORGANIZATIONAL STRUCTURE Functional structure Geographic divisions Product-based divisions Teams