Slide 2: Matrix Organization Matrix Structure : Matrix Structure Combines functional and divisional approaches to emphasize project or program.
Organization structure in which teams are formed and team members report to two or more managers Matrix Structure : Matrix Structure A matrix is a highly flexible form that is readily adaptable to changing circumstances.
Matrix structures rely heavily on committee and team authority.
Some companies use the matrix organization as a temporary measure to complete a specific project. The end of the project usually means the end of the matrix.
Applies in such diverse settings as manufacturing, service industries, professional fields, and the nonprofit sector Company Overview : Company Overview Martha Stewart Living Omnimedia , Inc. (MSLO)
is a leading provider of original "how-to" information, inspiring and engaging consumers with unique lifestyle content and beautifully designed, high- quality products.
MSLO is comprised of four businesses:
Publishing, Internet, Broadcasting and Merchandising
the combination of which enables the Company to cross-promote content and products. Advantages of Matrix Structures : Advantages of Matrix Structures Better cooperation across functions
Improved decision making
Better customer service
Better performance accountability
Improved strategic management Disadvantages of Matrix Structures : Disadvantages of Matrix Structures Two-boss system is susceptible to power struggles.
Team meetings in the matrix are time consuming
Teams may develop “Groupitis”
Requirements of adding team leaders to a matrix structure can result in increased costs. Slide 9: Groupitis
strong team loyalties that cause a loss of focus on larger organizational goals