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Management Control in Matrix Structures

Management Control in Matrix Structures

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Management-control-system – 4th Sem -
Management-control-system – 4th Sem -

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Published by: MAHENDRA SHIVAJI DHENAK on May 27, 2010
Copyright:Attribution Non-commercial


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Management control in matrix structures
 The matrix organization is an organizational structure in which the work is divided in projects. Each project is a profitcenter and is looked after by the project manager. Each project team has functional level employees that report to their respective functionalmanagers and their project manager Matrix organizational structure assigns multiple responsibilities to the functional heads.Evaluation of performance of such organizational entities is very difficult. Though theyoffer economies of using scares functional staff, it poses problems of casting theindividual responsibility. This form of organization is very complex, from the point of view of management control system.At the end we must not forget that the management control system is for the organizationand not the organization exists for management control system. One has to mold andremold the management control system to suit the given organization structureUsually in an advertisement agency, account supervisors are shifted from one account toanother on periodic basis, this practice allows the agency to look at the account from the perspectives of different executives. However taking in to consideration the time lag of result realization in such services is quite large. And this may pose problem of  performance assessment of a particular executive. This does not mean a control systemdesigner should insist on abandoning the rotation system of the executives.Matrix structure offers advantages such as faster decision making process, efficiency andeffectiveness but simultaneously it may pose problems such as added complexity incontrol function, assignment of responsibility and authority etc.Following are the advantages of Matrix organizational structure:1 Minimization of project costs, due to sharing of resources.2 Mimimization of conflicts , Stress distribution between the team3 Balance between time, cost and performance4 Sharing of authority and responsibility

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