A matrix organization is a hybrid form of organization in which functional and divisional forms overlap. Managers and staff personnel report to two bosses-a functionalmanager and a divisional manager, so matrix organizations have a dual rather than a single line of command.
Advantages of the Matrix Form
1. - Decision making is decentralized to a level where informationis processed properly and relevant knowledge is applied.
2. - Extensive communications networks help process large amounts of information.
3. - With decisions delegated to appropriate levels,higher management levels are not overloaded with operational decisions.
4. - Resource utilization is efficient because key resources are shared across several important programs or products at the sametime.
5. - Employees learn the collaborative skills needed to function in an environment characterized by frequent meetings and more informal interactions.
6. - Dual career ladders are elaborated asmore career options become available on both sides of the organization.
Disadvantages of the matrix design
1. - Confusion can arise because people do not have a single superior to whom they feelprimary responsibility.
2. - The design encourages managers who share subordinates to jockey for power.
3. - The mistaken belief can arise that matrix management is the same thing as group decisionmaking.
4. - Too much democracy can lead to not enough action.
Matrix survival Skills
To avoid problems, it´s recommended that the Top Executive needs to balance power and emphasis between thedivisional and functional goals. The Divisional and Functional Managers must learn to collaborate and manage their conflicts between both. And finally the employees must learn how to be responsible to bothsuperiors.
The matrix form today
Nowadays, the matrix forms reduces our costs and also acute in an international market, because of the distance and differences with local markets. The key is a...