COMPLEXITY OF MATRIX ORGANISATION AND PROBLEMS CAUSED BY ITS INADEQUATE IMPLEMENTATION

Abstract

Matrix organisation model is a sophisticated structure intended to combine both the efficiency and effectiveness of the functional and the product/service/customer/area dimensions. From the moment it was introduced in practice, this organisational architecture was accepted with enthusiasm, because it represented a complex organisational response adequate to the conditions which most of the companies in the world have been facing since 1970s. Although matrix organisation is not a novelty, it is still a controversial model of organisation design. The aim of this paper is to provide a deeper insight into the causes and effects of organisational misfits which appear in the implementation phase of three-dimensional matrix organisation, as well as to offer some practical recommendations for managers on how to improve their capacities for successful management of complex matrix organisation architecture in their organisations.