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  • 1.  The Matrix Structure

    Posted 05-23-1998 08:32
    Oh what the heck; I'll toss in my $.02 worth regarding the matrix, too.

    I live and work in one right now: our testing programs are matrixed against
    service provider areas, all within a project-job accounting structure that is
    embedded in a 100% cost-recovery financial system. (Makes for some
    interesting interactions :-))))

    Most of the time, organizational structure is irrelevant; its real function
    is to balance power by way of balancing control over resources. (How's that
    for an outrageous statement?) Said a little differently, almost any form of
    structure can be made to work reasonably well -- if the relationships among
    people are solid enough to work through and around the "kinks" that any form
    of structure will introduce. Absent strong interpersonal relationships, no
    organizational structure can be made to work well.

    The raison d'etre for the matrix lies in its potential for maximizing the
    efficient use of resources. This potential most often and most clearly
    exists in an organization undertaking project work (e.g., big engineering and
    construction firms like Bechtel, Stanley, etc). By matrixing expertise
    against projects and separating direction from development, resources are
    both efficiently deployed and carefully developed. That's the theory. In
    practice, it ain't that easy.

    My only piece of advice is for the client to be very, very clear regarding
    the reasons for setting up a matrix structure. In other words, what results
    are hoped for?

    Fred Nickols
    Executive Director
    Strategic Planning & Management Services
    Educational Testing Service
    Princeton, NJ 08541
    609.734.5077 Tel
    609.734.5590 Fax
    fnickols@ets.org

    Opinions expressed are mine, not those of ETS.


  • 2.  The Matrix Structure

    Posted 05-23-1998 11:54
    Interesting comments - as I remember the theory about structure, two
    things stand out relative to the present debate:

    1. Matrix organization and the project management approach are related,
    but not the same. In matrix management the two-boss approach remains
    always in place, although one of those bosses may change depending on
    project assignment; whereas in the project management approach project
    teams are developed as needed for those projects that are not well managed
    within the conventional structure. One functional manager MAY be in
    charge of the project managers/engineers, who in turn are part of teams
    recruited for relevant functions. Not everyone with similar
    responsibilities need be in project teams; the prevelance of teams will
    depend on need and perceptions of upper management.

    2. True matrix management is very expensive in terms of number of
    supervisors and the need for special HRM-type structures and provisions to
    overcome the inherent conflicts and discontinuities. Therefore, matrix
    management should generally be used ONLY when it is the only way to manage
    the great variety of complex projects the organization has to deal with.
    Avoiding missed tasks and the costs (including lost reveneues) are the
    primary justification for use of the matrix.

    Control of resources IS key in any organization; most faculty inherently
    know that, particularly those who are part of those institutions that are
    or were managed in a completely top-down fashion.

    For an example of the control issues in academia; when in industry I could
    prepare appropriations requests that justified spending millions of
    dollars, and my signature was accepted for requisitions involving $100,000
    or more; yet now I'm questioned closely as to whether the $75 I put down
    for transportation to and from an airport in another city is the right
    number. And the whole travel request, out of a grant which could only be
    spent for professional development of myself and my co-author, and which
    required that I take that trip to present the results, was almost
    disapproved because of that point.

    Tim Edlund, Morgan State University

    On Sat, 23 May 1998, fred nickols wrote: (in part) (my comment at end -
    Tim)

    > Most of the time, organizational structure is irrelevant; its real function
    > is to balance power by way of balancing control over resources. (How's that
    > for an outrageous statement?) Said a little differently, almost any form of
    > structure can be made to work reasonably well -- if the relationships among
    > people are solid enough to work through and around the "kinks" that any form
    > of structure will introduce. Absent strong interpersonal relationships, no
    > organizational structure can be made to work well.
    >
    > The raison d'etre for the matrix lies in its potential for maximizing the
    > efficient use of resources. This potential most often and most clearly
    > exists in an organization undertaking project work (e.g., big engineering and
    > construction firms like Bechtel, Stanley, etc). By matrixing expertise
    > against projects and separating direction from development, resources are
    > both efficiently deployed and carefully developed. That's the theory. In
    > practice, it ain't that easy.

    The classic example was/is Boeing, with the various design and build
    aircraft programs in various stages of completion. It's my understanding
    that at least some of the big construction firms has stuck with the
    project management approach, although the trend toward hiring such firms
    as the owner's representative may have affected this more recently.


  • 3.  The Matrix Structure

    Posted 05-24-1998 01:58
    Tim,
    You raise some interesting points. I think the major problem with matrix
    organisations is that sooner or later those with poor vision and leadership
    (and, dare we say it, management competence) eventually become
    hierarchically controlled - little kingdoms start to form and we have a
    traditional organisation calling itself modern.

    I agree with your points about project management and project teams. I do
    believe, however, that many of the problems can be overcome with clear
    management and leadership of the project (which includes delegation of
    authority and responsibility to the project manager to actually control the
    project), and sound, clear communications. Without them all sorts of
    problems occur which result in control being wrested back by the
    traditional hierarchical manager. Unfortunately a 'good' matrix
    organisations are in the minority simply because of human nature.

    Phil


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