Matrix Management: Arellano University Master of Arts in Nursing Administration & Management

Matrix Management
Arellano University Master of Arts in Nursing Administration & Management
Submitted by: Michael Janrick G. Rivera RN Submitted to: Salome Dalao RN, MAN Submitted on: December 8, 2012
I. Introduction Matrix management is a type of organizational management in which people with similar skills are pooled for work assignments (Galbraith, J.R. et al.,1971). A style of management where an individual has two reporting superiors , one functional and one operational (F. John Reh). It is a technique of managing an organization through a series of dual-reporting relationships instead of a more traditional linear management structure. In contrast to most other organizational structures, which arrange managers and employees by function or product, matrix management combines functional and product departments in a dual authority system. In its simplest form, a matrix configuration may be known as a cross-functional work team, which brings together individuals who report to different parts of the company in order to complete a particular project or task. The practice is most associated with highly collaborative and complex projects, such as building aircraft, but is also widely used in many project management situations. Even when a company does not label its structure a matrix system or represent it as such on an organization chart, there may be an implicit matrix structure any time employees are grouped into work teams that are headed by someone other than their primary supervisor. II. Main Body Matrix management is not a new concept. Since the 1970s organizations have known that there was a need to find new ways of handling the cross-functional or horizontal needs in a vertically aligned organization. They assumed that in order to get work done you needed authority and control and so the dual-reporting structure was created that assigned one person to two bosses who could exercise authority over him. This was the wrong solution to a real problem and as a result, the old matrix management fell into disfavor in the 1980s. The old matrix management maintained the central idea that authority was needed to get things done and continued to focus on the vertical dimension the dimension of reporting relationships. Matrix management structures combine functional and product departmentalization. They simultaneously organize part of a company along product or project lines and part of it around functional lines to get the advantages of both. Theoretically, managers of project groups and managers of functional groups have roughly equal authority within the company. As indicated by the matrix, many employees report to at least two managers. For Example: For a matrix management style of organization to be effective, the functional and operational managers must have equal weight in controlling the individuals. All engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a different engineering manager or a project manager while working on that project. Therefore, each engineer may have to work under several managers to get their job done.
Although all matrix structures entail some form of dual authority and multidisciplinary grouping, there are several variations. For example, Managers identified three basic matrix management models: coordination, overlay, and secondment. Each of the models can be implemented in various forms that differ in attributes related to decision-making roles, relationships with outside suppliers and buyers, and other factors. Organizations choose different models based on such factors as competitive environments, industries, education and maturity level of the workforce, and existing corporate culture. The advantages of a matrix include: Individuals can be chosen according to the needs of the project. The use of a project team that is dynamic and able to view problems in a different way as specialists have been brought together in a new environment. Project managers are directly responsible for completing the project within a specific deadline and budget. The disadvantages of matrix include: A conflict of loyalty between line managers and project managers over the allocation of resources. Projects can be difficult to monitor if teams have a lot of independence. Costs can be increased if more managers (i.e. project managers) are created through the use of project teams. Matrix management should not be confused with "tight matrix". Tight matrix, or co-location, refers to locating offices for a project team in the same room, regardless of management structure. III. Summary The first thing to realize is that it is the individual resource doing the work who has to manage the trade-offs. If you have three bosses, all with competing demands the reality is that you are the one who really decides precisely how much effort and attention each strand of work receives. Managers in this situation cannot just fall back on traditional line control or the fact that a certain level of effort has been agreed with the individuals line manager. Effective influence in a matrix depends on three things; Understanding what the individual values, Understanding what you have to offer and Understanding your sources of power. Not everyone finds this comfortable. We meet many managers who bemoan the loss of traditional power and authority and spend a lot of time fighting to get back the sense of control they had in the past. We also meet individuals who feel uncomfortable at the pressure they are under to serve multiplebosses.
IV. References Galbraith, J.R. (1971). "Matrix Organization Designs: How to combine functional and project forms". In: Business Horizons, 29-40. R J Shepherd (2007). "Mentoring Soft Boundaries for Management", MIDAS MDF 79-89 Burton, Richard M., and B0rge Obel (1998). Strategic Organizational Diagnosis and Design. 2nd ed. Boston: Kluwer Academic Publishers, F. John Reh retrieved at http://management.about.com/od/projectmanagement/g/MatrixManagemen.htm

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