Matrix Organization Structure and Innovation. Essay

Matrix Organization Structure and Innovation
Name
Institutional affiliation
Instructor’s name
Date
Matrix Organization Structure and Innovation
Introduction
Most of the organizations that function in a multi-project setting share the available resources to deliver superior quality yields cost-effectively. The matrix organizational structure was formulated to handle some of the challenges that were facing the conventional organizational structure. This structure happens to be an overlap between the project hierarchy and the functional hierarchy. In essence, the matrix structure entails an overlay of influence, lateral authority and communication (Schnetler, Steyn & van Staden, 2015). To boost innovation of most organizations, Matrix organization structure was formulated as the contemporary remedy to such challenges as early as in the 80s and early 90s. This paper seeks to investigate the various characteristics of the matrix organizational structure and how they relate to the success of projects in the organization by employing drivers such as collaboration, trust, and communication amongst the team members.
The matrix structure is necessary for the areas which require a robust project-based structure. The matrix structure has a system which has multiple commands together with behaviors, culture, and the support mechanisms. Lateral communication channels are formulated in matrix organizations hence the increased communication frequency unlike in the traditional structure (Schnetler, Steyn & van Staden, 2015). Collaboration is seen as the only way to break through in business. It can only be achieved if there are clear lines of communication within the organization.
Matrix organizational structures have benefits such as flexibility and the ease in adapting to the changing technology and market requirements; effective allocation of resource, improved formal lateral communication and the flexible human resource utilization whereby managers can deploy employees in areas where they are much needed. However, there are some problems associated with matrix organization structures. They include Power struggles, high overhead costs, scarcity of resources, anarchy, strangulation of decisions, unclear responsibilities and roles and finally the ‘two hat problem,’ where the functional managers have to double up as project managers. There is that risk of authority bias whereby some decisions are taken in isolation, and as a result, this could culminate into poor decision – making. The power struggle has also been witnessed in this kind of structure, a scenario that has led to poor response time. This is worsened when there are role conflict and ambiguity that could easily result in staff turnover and work-related stress (Schnetler, Steyn & van Staden, 2015).
The ad-hoc design of the structure ensures that...