strategic-management

CHAPTER 7 • IMPLEMENTING STRATEGIES: MANAGEMENT AND OPERATIONS ISSUES 227
TABLE 7-9 Advantages and Disadvantages of a Matrix Structure
Advantages Disadvantages
1. Project objectives are clear
1. Requires excellent vertical and horizontal
2. Employees can clearly see results
flows of communication
of their work
2. Costly because creates more manager
3. Shutting down a project is easily
positions
accomplished
3. Violates unity of command principle
4. Facilitates uses of special equipment/ 4. Creates dual lines of budget authority
personnel/facilities
5. Creates dual sources of reward/punishment
5. Functional resources are shared instead
of duplicated as in a divisional structure
6. Creates shared authority and reporting
7. Requires mutual trust and understanding
A typical matrix structure is illustrated in Figure 7-5. Note that the letters (A through
Z4) refer to managers. For example, if you were manager A, you would be responsible for
financial aspects of Project 1, and you would have two bosses: the Project 1 Manager on
site and the CFO off site.
For a matrix structure to be effective, organizations need participative planning, training,
clear mutual understanding of roles and responsibilities, excellent internal communication,
and mutual trust and confidence. The matrix structure is being used more
FIGURE 7-5
An Example Matrix Structure
COO
CFO
CSO
CIO
CEO
HRM
Project 1 A B C D E F G H I J
Project 2 K L M O P Q R S T
Project 3 U V W X Y Z Z1 Z2 Z3 Z4
Notes: Titles spelled out as follows.
Chief Executive Officer (CEO)
Chief Finance Officer (CFO)
Chief Strategy Officer (CSO)
Chief Information Officer (CIO)
Human Resources Manager (HRM)
Chief Operating Officer (COO)
Chief Legal Officer (CLO)
Research & Development Officer (R&D)
Chief Marketing Officer (CMO)
Chief Technology Officer (CTO)
Competitive Intelligence Officer (CIO)
Maintenance Officer (MO)
CIO
CLO
R&D
CMO
CTO MO