Matrix organizations

Both line and line and staff organization structures suffer from certain inflexibility. Both have established lines of authority and communication, and both work well in organizations with a relatively stable environment and evolutionary development (such as firms selling consumer products like toasters and refrigerators). In such firms, clear lines of authority and relatively fixed organization structures are assets that assure efficient operations,

Today's economic scene is dominated by new kinds of organizations in high-growth industries unlike anything seen in the past. They include industries such as robotics, biotechnology, and aerospace. In such industries, new projects are developed, competition with similar projects elsewhere is stiff, and the life cycle of new ideas is very short. The economic, technological, and competitive environments are rapidly changing. In such organizations, emphasis is on new product development, creativity, special projects, rapid communication, and interdepartmental teamwork. From that environment grew the popularity of the matrix organization. A matrix organization is one in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure (see Figure 3). In other words, a project manager can borrow people from different departments to help design and market new product ideas.

Matrix organization structures were developed in the aerospace industry at firms such as Boeing, Lockheed, and McDonnell Douglas. The structure is now used in banking, management consulting firms, accounting firms and agencies.

In a matrix organization, project managers are in charge of teams made up of members of several departments. In this case, project manager 2 supervises employees A, B, C, and D. These employees are accountable not only to project manager 2, but also to the head of their individual departments. For example, employee B, a market researcher, reports to project manager 2 and to the vice president of marketing.

																																										♦ President ♦
											Vice president (manufacturing										Vice president (marketing)														Vice president (finance)																		Vice president (engineering)
Project manager 1
Project manager 2									Employee A (buyer)										Employee B (market research)												Employee C (budget analysis)																Employee D ((product designer)
Project manager 3

Figure 3. A matrix organization

Ex.5. Comprehensive questions. Use different speech patterns: As for me I think, If I remember rightly, If I am not mistaken, To tell the truth I am sure, To my mind, etc.

1. What does “manageability” mean?

2. How would you define “organization”?

3. What are the principles of organization according to Fayol?

4. What is the Max Weber’s organization theory?

5. How would you describe the contribution of Joan Woodward to the field of organization principles?

6. What is the difference between centralized and decentralized authority?

7. What organization types can you name?

8. Would you give the difference between line and line and staff organizations?

Ex.6. Choose the necessary word and put in the sentence.

1. Organization structure shows … between |

each position and positions above and below. | 1 relationship

2. A sales manager has direct … over a |

salesman. | 2 to hold a position

3. As a rule a … usually does not give orders |

to other departments. | 3 authority

4. When the business gets more ... there is a |

need for staff departments. | 4 complex

5. My friend ...... of sales manager. | 5 task

6. The... of staff departments is to do different |

services. | 6 a line department

7. My friend works in a ......, he is responsible |

for the company product. | 7 a staff department

Ex.7.Read and play the dialog.

Text B

Peggy Forman is talking with Jaff Downing, another administrative assistant in her company.

Jaff How are you today, Peggy?

Peggy Oh, fine, thanks.

Jaff Glad to hear that. By the way, are you familiar with the organizational chart for the company?

Peggy No, I am not. What is it like actually?

Jaff Well, the chart shows how the employees are divided into groups. It gives one an overview of the chain of command in the company.

Peggy I see. The positions can be line and staff ones.

Jaff Yes. The subject is not new to you. What else do you know about it?

Peggy As far as I know a worker in a line position receives orders from his immediate subordinate.

Jaff Exactly, that's the line chain of command.

Peggy A worker in a staff position reports directly to a line worker but he neither gives nor receives orders for line workers. Am I right?

Jaff Yes, you are. But someone may have line authority over people in his department and not be considered a line administrator.

Peggy How can it be?

Jaff That's possible when a whole department is a staff department. For example, in our company the head of the credit department or the personnel department can hardly ever be president of the company.

Peggy And what do the people in staff departments do, how is their work different?

Jaff Well, they are usually busy with services and they could do the same service for any company. So they are not in the line.

Peggy It seems to be rather complicated.

Jaff It only seems so. I think the chart should help.

Peggy Oh, sure. But, Jaff, would you explain me what span of control is?

Jaff Oh, span of control refers to the number of people whom one managers directly.

Peggy Can you give me an example?

Jaff Well. The President of our company directly managers the Vice President of Production, the Vice President of Marketing and the Comptroller. Thus, his span of control includes three people.

Peggy Yes, now I see. Thank you for your help.

Jaff Not at all. Why don't we go to the coffee stall and have a snack together?

Ex.8. Give affirmative and negative answers to the questions.

Model: Have you examined the organizational structure of the company yet? Yes, I have already examined it. No, I haven't examined it yet.

1. Have you reported to the comptroller yet?

2. Have you settled this problem with the manager yet?

3. Have you learned line arid staff positions of the company yet?

4. Have you got acquainted with your immediate superior yet?

5. Have you heard about his span of control yet?

6. Have you met your immediate subordinates yet?

7. Have you passed your report to the credit department yet?