What is matrix management structure?
Matrix management is a form of organizational structure in which employees report to multiple bosses rather than one. With a matrix management system, employees in different functional divisions are distributed into product/project teams where they get to work with colleagues from other functional divisions.
What is performance management structure?
What is a performance management system? A performance management system is a mechanism for tracking the performance of employees consistently and measurably. It allows the company to ensure that employees and departments across the organization are working effectively towards achieving the business’ strategic goals.
What are the benefits of matrix structure?
3 advantages of a matrix organizational structure
- Improves collaboration and flexibility.
- Encourages open communication.
- Helps companies (and teams) stay nimble.
- Lack of clarity around roles and responsibilities.
- Potential for conflict between functional and project managers.
- Slower decision-making process.
What is the main purpose of performance management?
The purpose of performance management—which is ultimately communication—is to improve your performance. Performance improves when individuals do good work that aligns to the business objectives. Individuals do good work when they know what is expected, and receive helpful feedback and critical resources.
How does the matrix organization affect project management?
The matrix organizational structure has had a great influence on project management. The matrix evolved to fill a need for an organization capable of dealing with great project size and complexity. The result was increased organizational complexity. However, it has greatly added to the versatility and effectiveness of project management.
Who are the functional managers in the matrix?
Outlined in a grid fashion, the functional managers and project managers are role-specific and are included within the matrix. Functional managers oversee entire departments of an organization. For example, a company could have human resources, marketing, operational and finance departments.
Why do you need a performance management system?
A Performance Management System (PMS) is essential for such an organization, because a matrix organizational structure may not have a clear reporting line. In matrix organizations, while employees do have a line-manager, they are assigned different projects and spend most of their time working under different project managers.
Where can I find a matrix organizational structure?
The matrix organizational structure is typically found in project-based companies, such as infrastructure, construction, and technology services companies. Due to dual reporting, such organizations face challenges in evaluating the performance of their employees. These are some of the problems they face:
