Management > Functional structure versus matrix structure

 

Organizations today are highly structured and extremely organized. Structures are created for the purpose of faster and better organized operations. In chapter 5 of the text book, two examples of structuring were discussed. One is functional structure and the other is the matrix structure. Though both sounded very prospective, but there are flaws to them.

Functional structuring is grouping similar specialties together; defining each department’s task and responsibilities. Companies implementing this structure are much more organized. Top managers can assign responsibilities and distribute tasks easily and directly because each department has defined specialties. Examples of such structuring are accounting, information systems, human resources and purchasing departments. They were illustrated in the text as departments under the plant manager. Matrix structuring is simply another grouping of individuals together from the functional structure. In other words, it is picking individuals from different departments and creating a team with these individuals to work on a certain project. It is the same concept as picking out students from different classes and forming a basketball team with them. These students will have to answer to both of their class teacher and their basketball coach; functional manager and project manager respectively.

With this much understanding of functional and matrix structuring, we can anticipate the conflicts may arise. The most obvious problem would be power struggle between the two managers because each focuses on different aspects of the company and therefore, each will have their own objectives to reach. How should employees prioritize their tasks? Wouldn’t there be interpersonal conflicts such as rivalry between managers? Picture yourself as an employee in a company with such structuring. Knowing your functional manager is the one who will be in charge of promotions, salary recommendations, and annual reviews while matrix manager is in charge of the project you’re working on. Whose work will you focus more on? It’s impossible for employees to choose. Besides, having employees choose between managers will create extra conflicts within the working environment.

I came across a webpage that discusses the same issue. It suggests regular communication as key to succeed in a matrix structured company.

“Matrix management relies on cooperation and communication between project and line managers…There should be effective channels of communication between the managers involved. All of the relevant line managers should contribute to project planning and resolving decisions should be reached by consensus…There should be formal procedures in place for resolving any management conflicts that do arise.”

I agree with the suggested tools in managing a matrix structured company. These steps can be easily implemented by holding a managerial meeting prior to assigning tasks to employees for working in a project. Functional and matrix managers should set some ground rules that they both will follow throughout the process of the project. If necessary, the plant manager can also be involved and take part in the set up of the rules so that both managers will know exactly what they will have to do to reach their goals.

 

Reference:

Interactive Training Technologies

http://www.business-management skills.com/BMS%20Project%20Management%20Skills%203.htm

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