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Marketing Management/Essentials of Marketing

Notes 12.4.7 Matrix Management Organisation

Matrix Management is a type of organisational management in which people with similar skills
are pooled for work assignments.
It is the interface of an organization both vertically and horizontally. Traditional organizations
consist of horizontal layers with a distinct line of command. Under matrix management, people
may report to more than one person.
It is a style of management where an individual has two reporting superiors (bosses) – one
functional and one operational.
This is commonly seen in project management where an engineer, for example, reports to the
chief engineer functionally, but reports to the project manager on operational project issues.

Matrix management can provide several benefits:
1. Reduces the number of organizational layers down to project by project.
2. Better utilizes the human resources of the organization.
3. Eliminates unnecessary work and improves value-added type activities.
4. Emphasizes the need to change and work around projects as opposed to department.
Matrix management does have some drawbacks:
1. It can create much more conflict since people are forced to interact with others outside
their traditional areas.
2. Traditional career paths no longer exist.
3. Top managers (especially Project Managers) can gain increased power over traditional
department managers.
Figure 12.6: Matrix Management Organisation

Task Contact a pharmaceutical sales representative and study how the individual
works in the field. Prepare a report about missionary selling activities.

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