CONCEPT OF MATRIX ORGANIZATION AND ITS FEATURES

The term 'Organization' can be used in different senses. It can be used as a group of person working together to as a structure of relationships or as a process of management. When it is used to refer to a group of person working together, it means a concern, an undertaking or as enterprise. When it is used to refer to a structure of relationships, it means the structural relationships among the positions and jobs and person (i.e., the framework of responsibility and authority) through which the enterprise functions, and it is called organization structure.
According to Louis A. Allen: "Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship the purpose for enabling people to work most efficiently together in accomplishing objectives".

From above definition we have following   nature of organization are:
v Organizing or organization is a management process (i.e., a managerial function)
v Organization is concerned with groups of peop1e. An organization cannot be constituted by a single person. It comes into existence only a group of persons come together.
v Organization is, concerned with identification and grouping of activities into logical pattern so as to secure homogeneous groups of activities.
v Division of work of division of labors the basis of organization.
v Integration or-coordination of the various activities of the enterprise is another important feature of organization.
v An organization structure has no meaning unless it can contribute to the accomplishment to the common objectives, i.e., the goal or objectives of the enterprise.
v An organization structure consists of various positions arranged in a hierarchy with clear definition of authority and responsibility associated with each of the positions.
Organization process involves taking a number to steps, such as the identification of the activities to be performed to attain the objective of the enterprise, the appropriate groping of activities into logical pattern, assignment to activities to appropriate departments and people, delegation of authority, creation of authority -responsibility relationships, etc























Matrix Organization is a combination of two or more organization structures .For example, functional organization and project organization.
The organization is divided into different functions, e.g. Purchase, Production, R&D etc. Each function has a function (Departmental) manager, e.g. Purchase Manager, Production Manager etc.
The features of Matrix organization
1.      Hybrid structure.
Matrix organization is a hybrid structure. This is so ,because it is  a combination of two or  more organization  structures. It combines functional organization with a project organization .Therefore , it has the merits and demerits of the both these  organization structures.
2.      Function
The functional Manager has authority over the technical (functional) aspects of the project .The responsibilities of the functional manager are:
a)      He decides how to do the work.
b)     He distributes the project work among his subordinate

3.      Project Manager
The project manager has authority over the administrative aspects of the project. He has full authority over the financial and physical resources which he can use for completing the project.
The responsibilities  are as follows.
a)      He decides what to do.
b)     He is responsible for scheduling the project work.


4.       Problem of Unity of command
There is a problem of the unity of command .This is so, because the subordinates receive orders from two bosses viz., the project Manager and the functional manager. This will result in confusion disorder, indiscipline, inefficiency etc. All this will reduce the productivity and profitability of the project.

5.      Specialization
The project manager concentrates on the administrative aspects of the projects while the functional manager concentrates on the technical aspects of the project.
6.      Suitability
It is suitable for multi- project organizations. It is mainly used by large  construction companies , that  construct  huge residential and commercial projects in different places at the same time. Each project is looked after (handled) by the a project in different places at the same time .Each project is looked  after (handled) by  project manager.

Hence, Matrix organization is a combination of two or more organization structures. For example, functional organization and project organization. 

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