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What is the Matrix Organization Model?

Many large multi-national organizations eschew the simplicity of Charles Handy’s Federal Organization model. Instead, they favor the big, complex, and ugly approach that is the Matrix Model. 📘 Get the Book of the Course! The Nature of Organizations: A Management Courses Introduction https://geni.us/bzHaVP Watching this video is worth 2 Management Courses CPD Points*. (See below for more details) The Nature of Organizations ======================= This video is part of course module number 6.1.2 Program 6: Managing within Organizations Course 1: The Nature of Organizations Section 2: Organizational Models Other videos in this section include: 🎬 Edgar Schein's Two Organizational Cultures -    • What are Edgar Schein's Two Organizational...   🎬 Henry Mintzberg's 4 plus 2 Organizational Types -    • Henry Mintzberg's 4 plus 2 Organizational ...   🎬 Charles Handy's Gods of Management -    • What are Charles Handy's Gods of Management?   🎬 Charles Handy's Shamrock Organization -    • What is Charles Handy's Shamrock Organizat...   🎬 Charles Handy's Federal Organization Model -    • What is Charles Handy's Federal Organizati...   🎬 Charles Handy's Triple-I Company -    • What is Charles Handy's Triple-I Company?   🎬 Peter Senge's Learning Organization -    • What is Peter Senge's Learning Organization?   🎬 Adhocracy -    • What is the Adhocracy Organizational Model?   🎬 The Agile Organization -    • What is The Agile Organization?   🎬 Brian Robertson's Holacracy -    • What is Brian Robertson's Holacracy Organi...   🎬 Virtual Organizations -    • What are Virtual Organizations?   LESSON NOTES Most modern organizations adopt elements of the Matrix organization, once they reach a certain size. But, in its full horror, the Matrix Organisation is a real nightmare to navigate. Bob is the Technical Director of a mid-size UK subsidiary (TechCo) of a global business (MegaCo). TechCo sells and operates across the world alongside other brands within MegaCo’s Services Division. Before MegaCo acquired TechCo, Bob was one of the TechCo Directors. Together they made decisions about product development, marketing, sales, and support. Now, Bob is responsible to MegaCo Services Division Technical Director for Product Development. Also to TechCo’s Managing Director, also to Services Division’s Country Leader. There are at least three dimensions to MegaCo’s matrix: 1. Brand (TechCo) which sits within Product Set (Services Division) 2. Country (UK), which sits within region (EMEA – Europe, Middle East, and Africa) 3. Function (Technical) which sits within the wider Product vertical Matrix organizations sound like a great solution to the competing demands of different parts of a large organization. But they force the resolution of those competing demands onto each senior and middle manager. Even when there is a notional ‘primary dimension’, managers still have a reporting line through other dimensions and therefore can rarely avoid the need to make compromises and disappoint senior executives. The benefit of Matrix Organizations is they avoid over-centralization. The cost is in creating two, three, or more competing centers! Tom Peters and Robert Waterman dismiss Matrix Organizations in their 1982 book, In Search of Excellence (https://geni.us/CrE5), as ‘a logistical mess’. The only way to really make a Matrix Organization work is to give each manager, at every intersection of the matrix, true delegated authority to make the decision that is right at the time. For that to work, each manager needs good quality information at all times, and the ability to assess the situation and make a considered choice. RECOMMENDED EXERCISE 1. Assess the pros and cons of a highly matrix organizational structure (3 MC CPD Points) 2. To what extent is your organization a matrix organization? How would it improve and what would it lose, if it were to move further in the direction of a fully-matrix structure? (3 MC CPD Points) 3. Compare these pros and cons with those for a Federal Organization    • What is Charles Handy's Federal Organizati...   (2 MC CPD Points) DOWNLOADS Free Resources CPD Tools - https://gum.co/MC-CPD Paid resources Management Courses Onboarding Kit - https://gum.co/MC-ObK ($3) RECOMMENDED READING Understanding Organizations https://geni.us/oB774Do Images of Organization https://geni.us/hrOemEs Inside Organizations: 21 Ideas for Managers https://geni.us/YwwL Gods of Management: The Four Cultures of Leadership https://geni.us/bpPeC5 Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-... (the links are affiliated) Management Courses Continuing Professional Development (CPD) Points You can record your Management Courses CPD points on our free, downloadable CPD record log. Download it at: https://gum.co/MC-CPD Each video has two levels of MC CPD points. For this video: If you simply watched the video, record 2 MC CPD points If you also carried out all of the recommended exercises, score a total of 10 MC CPD points Note: Links to our book recommendations are affiliated through Amazon #Management #ManagementCourses #MatrixOrganization