Complexity of matrix organization and problems caused by its inadequate implementation

Abstract

Matrix organization model is a sophisticated structure intended to combine both the efficiency and effectiveness of the functional and the product/service/customer/area dimensions. From the moment it was introduced in practice, this organizational architecture was accepted with enthusiasm, because it represented a complex organizational response adequate to the conditions which most of the companies in the world have been facing since 1970s. Although matrix organization is not a novelty, it is still a controversial model of organization design. The aim of this paper is to provide a deeper insight into the causes and effects of organizational misfits which appear in the implementation phase of three-dimensional matrix organization, as well as to offer some practical recommendations for managers on how to improve their capacities for successful management of complex matrix organization architecture in their organizations.

Keywords

• matrix organization
• organizational complexity
• organizational design