The Use of The Matrix Structure in Business Organizations

Introduction

The matrix structure cohesively integrates the importance of traditional as well as functional and product based structures. Thus in a matrix structure, reporting channel differ, since employees have to report to both their managers as well as product managers. Consequently, before implementing the matrix structure, organizations should first take in consideration of its potential benefits as well as the challenge. Although Matrix structure has many potential benefits in comparison with traditional structures, in terms of flexibility such as allocation of resources, an increased flow of information. However, its many challenges should not be ignored for instance, it is difficult to implement and sustain. The structure also has a high overhead costs and can significantly increase internal competition for limited resources.

Organization using the Matrix Project Structure

Vodafone Australia, has implemented the Matrix project structure, this has provided potential benefits to the company in terms of allocating their employees exclusively on projects. Vodafone recently had taken many small and big projects, in the NSW this includes assets allocation, integration of their human resource department and other projects related to sales and procurement. Firstly the matrix project structure, allowed the company to enable their employees in order to form additional groups around products and goals. This thus, enables employees to significantly contribute to their expertise to a more cross functional team. In Vodafone, the dual reporting is more approachable and flexible; employees have to report to their managers and project managers as well, as they work along on different project from time to time. While the line manager at Vodafone is responsible for managing the workflow, the project manager at the same will oversee aspects of the project. For example any software implementation , will have to do with IT employees, they will report to the IT manager, however at the same time they will also report to the project Manager who is in charge of the implementation of the project. Thus, the matrix project structure has given Vodafone the flexibility in terms of managing both functional as well as project needs.

Accordingly, if an organization is willing to adopt a matrix structure, Firstly, it should also take in consideration of the transition which also requires substantial investment in terms of time and effort. Secondly, by adopting a matrix project structure, changes to the organization are not made very easily. This would then make the organization to acknowledge the cultural attitudes and norms such as increasing the level of awareness by developing and implementing effective training for their employees as well as leaders more effectively. This thus can increase Matrix structures success; organizations on the other hand should also consider the challenges that are associated by adopting to Matrix project structure such as aligning of goals.

As projects have become more complex in the recent few years, thus the insufficiency of the hierarchical organization structure has become more apparent.

In the meantime, the need for planning the association around the undertaking to be performed was figured it out. Luckily, changed however more unpredictable authoritative choices have turned out to be accessible. The present administration reasoning is that there is no "one most ideal path" for all tasks to sort out. Or maybe there are numerous options from which to choose a particular task. Among these options are different types of the grid.

A formalized matrix structure type of organization was first created and recorded in the United States aeronautic trade where it developed amid the development of the expansive, complex activities of the 1960s. On the off chance that a task was vast, it generally turned into an unadulterated venture association in which the greater part of the capacities and assets important to achieve the targets of the undertaking were placed in a solitary various leveled association. This option worked extremely well if the venture or program was huge, and if the administration client was also sorted out, and if the client demanded such an association as well as was ready to pay for its additional cost. However, the aerospace company found that they had many projects which was not large but were really complex and made it rather difficult to be handled by single team. Also management found it difficult to align single responsibility for each. As a result some form of project management was highly needed and the Matrix project structure, was the only answer. Thus Matrix project structure became apparent in the digital workplace. This seemed more like a mathematically trained engineers who needed to apply grid like structure that was evolving.

It can also be noted that the matrix project structure, has applications that are beyond the project management. However, in this report we had only analyzed the discussion based on, the viewpoints from its project management basis. A Matrix project organization can be well referred to as multi team where the team members have been allocated from various departments of the organization.

Thus, organization who use Matrix structure build their project and specific tasks based on the project rather than organization functions. Therefore, a project organization is cornerstone of the project hierarchical organization.

Challenges

Although Matrix project structure has potential benefits, however it is considered one of the most complex organization structures in terms of implementation and sustaining. There can be many problems encountered when implementing this structure such as

Ø Internal complexity

More accountability on employees can make reporting relationship confusing. For instance there can be lack of responsibilities as employees may get different guidelines from their managers and project managers, this can lead to fall down in functional goals, plans and priorities. ‘

Ø Higher overhead costs

As the Matrix structure may require, twice the number of managers they also require organization for more management costs. This can significantly increase the overhead costs. Therefore, smaller organizations should take in consideration of all these factors before implementing the structure.

Ø Scarcity of Resources

The number of employees that need to be involved in resource allocation and decision making can lead to more competition for resources. Moreover skilled and employee expertise can lead to lack of resources and enhance competition.

In spite of the fact that the points of interest and weaknesses related with embracing a lattice structure are generally clear and have a tendency to be normal to most framework associations, one investigation discovered that view of the difficulties related with framework structures contrast between top‐level and mid‐level directors. Mid‐level supervisors report indistinct parts/obligations what's more, silo‐focused workers to be the greatest difficulties of lattice structures, while top level directors refer to misaligned objectives, uncertain expert, and absence of framework guardianship to be their greatest difficulties. These things constitute neither points of interest nor

hindrances, yet rather speak to situations of which associations trying to receive lattice structures ought to know. Adjusting objectives among various measurements (e.g., capacities, items, clients, geographic areas, and so forth.) can be troublesome, and top‐level directors report misaligned objectives as one of the greatest difficulties lattice structures exhibit. This might be on account of top‐level administration is ordinarily more required than mid‐level administration in more elevated amounts of objective setting and the advancement of business objectives.32 Within this class, top‐level administrators particularly refer to the accompanying as reasons adjusting objectives to measurements is especially troublesome inside a framework structure:

Ø There can be conflicting objectives as far as matrix dimension is concerned

Ø Lack of process and system in place to align management goals.

Ø Lack of coordination poor work plans.

Ø Lack of communication and consultation between matrix dimensions.

However, strategies that can be in place in order to address the following issues will be a more cohesive established goals and processes in place one that can easily reflect the dimensions of the organizations. Such as vertical and horizontal axes, for instance the goals and objectives of one department should support the other goals of other department.

Moreover, lack of clarity as far as roles and responsibilities are concerned, can also been seen as major challenge. Since managerial tasks may be aligned to mid- level management who are not very clear of their specific roles. This may be due to unclear job description, roles and responsibilities. More confusion and lack of decision making, thus it is fundamental to understand as the demand of organizations increase roles and responsibilities of employees should change as well. This potentially may create many problems with the employees, as most of the organization make comprehensive efforts in terms of aligning functional roles between management and project management. Employees need a more clear direction, so that they can take initiative or adopt to new changes.

basic factor in taking care of issues identified with vague specialist is the hierarchical

culture. In associations with a political culture, the propensity to center around keeping up power and status can overwhelm the need to take care of issues. Dissimilar to those with a political culture, associations with a community oriented culture are obviously better at exploring these ambiguities since they can casually arrange and center around problem‐solving. Another intricacy that can emerge when associations change to network structures is that senior pioneers can neglect to give neighborhood or product‐level pioneers the specialist expected to achieve their particular objectives or targets. Senior authority might be hesitant to designate decision‐making duties to other practical pioneers. Since one of the qualities of lattice associations lies in decentralized control, the failure of senior initiative to share expert constitutes a noteworthy issue and undermines the whole structure. Alternately, a fruitful framework structure engages people with the most up‐to‐date, exact data to decide. This regularly implies nearby pioneers—who every now and again have a more thorough comprehension of the neighborhood scene than senior initiative—are better prepared to decide. In the best grid structures, a simple five percent of choices are made by senior authority, while almost 90 percent of choices are made by nearby initiative

Adjusting objectives among various measurements (e.g., capacities, items, clients, geographic areas, and so on.) can be troublesome, and top‐level chiefs report misaligned objectives as one of the greatest difficulties framework structures introduce. This might be on the grounds that top‐level administration is ordinarily more required than mid‐level administration in larger amounts of objective setting and the advancement of business objectives.32 Within this classification, top‐level supervisors particularly refer to the accompanying as reasons adjusting objectives to measurements is especially troublesome inside a lattice structure:

Recommendation

Before implementing, matrix structure organizations should also take in consideration of their business model such as if it would require any changes. Or, how it can operate more effectively. Moreover the culture of the organization how it can significantly support the changes that is indicated by the matrix structure. Moreover, the workforce whether it has the ability and flexibility to change. The cost that is associated and if there is a rationale that will be required to adopt matrix working.

Conclusion

Once an organization tries to adapt to the matrix structure, this will then require the organization culture to address significant issues. A significant training of employees and managers, this can help in the decision making. Once the structure is implemented the focus should be on its values. , it should also take in consideration of the transition which also requires substantial investment in terms of time and effort. Secondly, by adopting a matrix project structure, changes to the organization are not made very easily. This would then make the organization to acknowledge the cultural attitudes and norms such as increasing the level of awareness by developing and implementing effective training for their employees as well as leaders more effectively. This thus can increase Matrix structures success; organizations on the other hand should also consider the challenges that are associated by adopting to Matrix project structure such as aligning of goals.