Pros & Cons of Matrixes Organization

Martin Richenhagen, CEO of Duluth, 「Simply Management (Indigo Custom Publishing, 2006)」

 

■ Advantages

• Better overview of a product [that is] manufactured in several areas or is sold by various subsidiaries in different markets
• The matrix position is a direct and helpful source of cross-information.
• The matrix org. is well-suited for development of new business areas and coordination of complex processes with strong dependencies.

■ Disdvantages

• Unclear responsibilities (if no areas of results are established), thus complicating governance and [control].
• [Employees holding] matrix positions and functional positions delegate responsibilities to each other.
• Uncertainty about who is to receive recognition for good performance and who is to be addressed for poor performance.
• Insufficient clarity concerning who is in charge, as well as decisions and direct authority.
• Potentially greater stress for employees.