Problems with Matrix Organizations

Davis and Lawrence point out at least nine problems that can affect a matrix organisation.

1. Tendencies towards anarchy: Dual and multiple reporting can Create a formless state of confusion where people do not recognise a boss to whom they feel responsible.

2.  Power struggles: A matrix organisation encourages jockeying for power and upward mobility because an individual's career path can appear "fuzzy".

3.  Severe grouping: Matrix behaviour is often confused with group decision-making, which often wastes time and hampers managers from being quick and decisive.

4. Collapse during economic crunch: Often when business declines for any number of internal or external reasons, the matrix form becomes the scapegoat for poor management and is discarded, even after tremendous investment in its creation.

5.  Excessive overhead: In initial phases a matrix organization has high overhead costs. It appears that costs will double because of double management and a dual chain of command. In the long run, however. extra costs should disappear and be offset by productivity gains.

6.  Sinking to lower levels: A matrix organization has difficulty existing at higher levels of a corporation and has a corresponding tendency to sink to group and division levels, where it thrives and flourishes. Guidelines for Making Matrix Departmentalization Effective in Matrix management can be made more effective by following the undermentioned guideline:

1. Define the objectives of the project or task.

2.  Clarify the roles, authority and responsibilities of managers and team members.

3.  Ensure that influence is based on knowledge and information, rather than on rank.

4.  Balance the power of functional and project managers. 

5.  Undertake organization and team development.

6.  Select experienced managers for project who can provideeffective leadership.

7.  Reward project managers and team members fairly.