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Prior to the 1970s, large business organizations functioned in "silos." These were groups of workers who functioned in isolated groups and were subordinate to line or functional managers. Picture several columns on a page. Each column is headed by a line manager, and each line manager supervises one worker group. Because these groups functioned with autonomy, some work functions were replicated by each silo.
Consider this example of an Information Technology organization. Software programmers might be found in the development silo, as well as in worker groups addressing customer support issues, and in the finance departments as well. Each of those groups has, upon occasion, required programmers to fulfill some functions of their working group.
During the 1970s, businesses began to work to improve organizational operations, and this resulted in the development of a "Matrix" structure.
To illustrate the operation of a matrix organization, consider the information technology company described previously. Everyone who functions as a computer programmer is organized into a single department, which reports into a manager who supervises them. This manager would oversee nearly all programming functions of the company. In this type of format, line managers are usually known as functional managers because they supervisor individuals who perform a similar function.
In this type of organization, workers are categorized by skill sets and grouped in silos, in a fashion similar to the columnar organization of a matrix. Each silo, then, has a single dedicated manager to whom the workers report and are accountable. This manager is usually responsible for promoting his or her workers, departmental budgeting, and administrative oversight of the silo.
At this point, it might seem that a matrix organization is structured almost like a traditional company, with the exception of categorizing workers within each silo according to similar job duties. One other important distinction between a matrix and a traditional organization is that matrices are organized in rows, or lines, that run across each column.
Although traditional organizations worked well enough, they were not very efficient. Many skills were duplicated within the company. Their primary weakness, however, was evident, in project management situations. Unfortunately, these organizations did not utilize or conceptualize the nature of a team of workers assigned to one particular project. This was because each member on the team worked in a different functional area, and worked for a different supervisor, rather than the manager of the project. Needless to say, this is a recipe for confusion and failure.
Consider, then, a matrix with several columns of workers who perform similar functions and are each supervised by a functional manager. Think of rows stretching across the column, with each row supervised by a project manager (this person can be visualized as being at the far left side of the page and leading a single row). Each row, then, intersects each column of workers. This allows each row to manifest as a group of workers that function differently and are led by one project manager.
Obviously, with such a structure, some tension is present between project managers and each functional manager. They share workers, and because each of them has a different job to do, their interests conflict.
Several different categories of matrix organizations exist. In each, the goal is to create a balance of power between each manager's particular functional needs.
Daiv Russell is a management and marketing consultant with Envision Consulting in Tampa, Florida. Learn more about matrix structure at project-management-course.info. Choose the right Project Management Software and optimize your Gantt Charts
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