Challenges and Strategies of Matrix Organizations:

Top-Level and Mid-Level Managers’ Perspectives

Thomas Sy, College of Business Administration, California State University, Long Beach Laura Sue D’Annunzio, A.T. Kearney Inc

sing surveys, inter-views, and work-shops with 294 top-level and mid-level managers from seven major multinational corporations in
six industries, we identified the top five contemporary challenges of the matrix organizational form:
(1) misalignedgoals,
(2) unclear roles andresponsibilities,
(3) ambiguousauthority,
(4) lack of a matrixguardian, and
(5) silo-focused employees.

We also provide managers with the best practices that will improve their matrix organizations.

Interest in matrix organizational structures peaked during the 1970s and 1980s.Since that time, research and literature on the
matrix have dropped noticeably.Simultaneously, organizations continue to adopt the matrix as a viable alternative to
deal with their increasingly complex

Overview of the Matrix

By its simplest definition, the matrix is a grid-like organizational
Matrix Forms structure that allows a company to address multiple business dimensions using multiple command structures. The matrix organizational form emerged in the aerospace industry during the 1960s as government contracts required a project-based system linked directly to top management (Knight, 1977). While the matrix can take many forms, three common variants are the functional matrix, balanced Functional Balanced Project matrix, and project matrix (see Exhibit 1) (Burns, 1989; Galbraith,Matrix 1971, 1973; Kolodny, 1979; Larson & Gobeli, 1987). Matrix organizational structures are comprised of multiple business dimensions.
Basic matrix structures have two dimensions (e.g., function by prod-
Employees remain Classic model by Employees moves full members
which the matrix between function matrix, geography by product matrix). More complex matrix of functional form is known.
al departments
structures could encompass three or more dimensions. For example,
departments and projects and a company could be structured not only to focus on product and Employees are respectively retain Processes and officially function, but also to deal with geographic differences.