A Great One!

An organization design labeled the matrix structure is currently a popular, well-liked, contemporary structural design that attempts to maximize the strengths and minimize the weaknesses of both the functional and divisional structures (Gibson, Ivancevich, Donnelly & Konopaske, 2009). The matrix organization superimposes a lateral structure that concentrates on product or project coordination on a vertical functional structure (Cummings, 2009). In practical terms, the matrix design combines functional and product department bases (Gibson, et al., 2009). The matrix organization design was originally created in the aerospace industry where changing customer requirements and technological conditions forced managers to focus on lateral relationships between functions to develop a flexible system of resources and processes, and to accomplish project objectives (Cummings, 2009). Today organizations such as IBM, Hughes Aircraft, ITT, Prudential Insurance, TWR, Texas Instruments, and Caterpillar Tractor are just a few of the users of the matrix system (Gibson, et al., 2009). Though the precise meaning of the matrix organization differs in practice, it is usually seen as a balanced arrangement between functional and product organization, between departmentalization by function and by product. Matrix organizations accomplish this preferred balance by overlapping a horizontal structure of authority, control, and communication on the vertical structure. For example the matrix design appoints specialists from different functional departments to work, usually, on more than one project being directed by a project manager. The matrix structure is much different from the traditional structure in that it creates a dual chain of command. Employees ...

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...e people work together in the organization that makes the structure succeed or fail. This includes implementing the structure and strategy correctly- and often this is the part that is neglected (Global Integration, 2011).

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References

Cummings, W. (2009). Organization development and change. (9th ed.). Mason, Oh.: South- Western Cengage Learning.

Gibson, J. I. (2009). Organizations, behavior, structure, process (13th ed.). International Edition. Singapore: McGraw Hill.

Global Integration. (2011). Matrix structure and organization. Retrieved from http://www.global-integration.com/what_we_do/matrix_organisation_structures.html.

Robbins, & Coulter. (2007). Management. Upper Saddle River, NJ: Pearson Prentice Hall.

Spector, B. (2010). Implementing organizational change: Theory into practice (2nd ed.). Upper Saddle River: Pearson Prentice Hall.