Matrix management is an attempt to synthesize functional and divisional organization. Mainly used in industry, where design and manufacturing must be coordinated, it requires certain arrangements and the skill of a seasoned executive.

There are four types of organization within a company:

• The functional organization that separates functions within the same company: Sales, R&D or Logistics. Each department has a director, a few managers and several employees.
• The divisional organization is adopted by companies developing several activities: Hotels and Transport, which have an autonomous presence in different territories;
• Project-based organization ;
• Matrix organization.

The matrix organization emerged in the United States in the 1950s. Boeing is behind it. This type of management offered a response to production that was becoming increasingly complex and demanding. The selected employees then belonged to a specialized function (engine, wings, landing gear…) and a division (Boeing 727, Boeing 737…).

The matrix organization is unique in that it combines corporate functions and divisions. An employee can be part of the Spanish division and work with colleagues in other countries on a product launch. Each member of the team is specialized in his or her field. It can take different forms: functions and a product, functions and a strategic project, digital transformation and several countries… In this scheme, the hierarchy is overturned because an employee has at least two leaders: the line manager in the function and the project manager who leads or coordinates the work group.

The matrix organization favors cross-functional relationships. Projects multiply and employees are always involved. Motivation is at an all-time high. However, this can lead to a division of decision-making powers. Employees find it hard to satisfy both bosses, especially when orders are contradictory. End-of-year performance reviews and the awarding of performance bonuses are rarely the subject of consensus: one person is satisfied with the employee’s involvement and results; the other feels that he or she is not present enough and that his or her contributions are insignificant… Decision-making is less visible and useless meetings multiply.

Moreover, matrix organization encourages specialization. Replacing an unavailable employee costs the company more. Any organizational change within a company must be carefully prepared and deployed. It is advisable to entrust these strategic changes to a professional, such as an interim manager, who can contribute his or her experience and steer the implementation of a matrix organization or any other form of management.