Matrix management: recipe for chaos? When it works, it works well. When it doesn't, it's a fast track to disaster. The strengths of the model appeal to many corporations today, but not all are suited for a matrix structure.

• Author: Numerof, Rita E.
• Position: Organization Management - Column

THE MENTION OF ITS NAME can stir a gamut of reactions. Supporters call it invaluable, a critical component to the success of their organization. Detractors rail against it as the worst idea ever devised, one that has cost businesses untold amounts in lost productivity.

In reality, it may be more the victim of misinterpretation and misapplication than what critics would claim.

"It" is the concept known as matrix management. It has been in use since World War II (see sidebar, "Emergence of the Matrix"). Since then, in a relatively short period of time, matrix management has been adapted for use by corporations worldwide.

It has been praised as a concept that enables organizations to effectively manage and deliver a wide variety of projects. Supporters say it is excellent for allocating company assets and creating consistency and standardization in a cost-effective fashion. Alternately, it has been criticized as a model that dilutes the effectiveness of management and is too rigid to allow a corporation the flexibility it needs to succeed in today's Internet-driven economy. Critics deride it as a "ticket to hell" that leaves no one in authority to make basic business decisions.

Which is the true picture of matrix management? Why has it been hailed and criticized at the same time? Answering these questions has perhaps never been more important because, as today's dynamic conditions continue to drive our economy, the concept of matrix management, which is entirely compatible with these conditions, is increasingly timely.

What is matrix management?

Matrix management addresses a problem that has become increasingly familiar to corporations in virtually every industry today: assignments and projects come and go with needs and demands of various customers, but basic functions within a corporation, such as engineering, IT, and manufacturing, remain necessary components of the organizational process. A company may find it needs to assign specialists to functional departments and pull specialists into special projects under management roles. The model of the matrix utilizes multiple reporting relationships to efficiently use resources by organizing personnel around specific tasks. A matrix application integrates the activities of various specialists while maintaining specialized units within a corporation. For example, an engineering team may be pulled together to design a particular product with experts from other functions. For the duration of the project, they and their colleagues will report to the project leader while retaining their reporting relationsh ip to the head of engineering.

Matrix can be applied to entire organizations, as well. For example, human resources staff may report to their functional executive and also to the business line manager(s) they are assigned to support. Regardless of the type of matrix, its duration, or the functional activities that are represented, the primary characteristic of a matrix organization is that staff in a matrix structure will report to two managers rather than the more traditional single manager, thus creating a dual instead of a single chain of command. The first chain of command is for the functional chain, and the second is for the project itself or the business line.

When should matrix be...