Yes, Managing by objectives does result in increased use of matrix organizational structures. Matrix organization is the combining of functional and project or product patterns of departmentation in the same organization structure. As shown in the figure below the matrix organization in an engineering department, there are functional managers in charge of engineering functions and an overlay of project managers responsible for the end product. This is fairly common not only in engineering and in research and development but has been used in product marketing organization.
The advantages of using the matrix organization are:
Orientation towards end results
Professional identification is maintained
Pinpoints product-profit responsibility
Some of the guidelines to make matrix management more effective are:
Define the objectives of the project
Clarify the roles, authority and responsibilities of managers and team members
Influence should be based on knowledge and information rather than on rank
Balance the power of functional and project managers
Select an experienced manager who can provide leadership
Undertake organization and team development
Install appropriate cost, time and quality controls
Reward project managers and team members fairly.
The advantages of using the matrix organization are:
Orientation towards end results
Professional identification is maintained
Pinpoints product-profit responsibility
Some of the guidelines to make matrix management more effective are:
Define the objectives of the project
Clarify the roles, authority and responsibilities of managers and team members
Influence should be based on knowledge and information rather than on rank
Balance the power of functional and project managers
Select an experienced manager who can provide leadership
Undertake organization and team development
Install appropriate cost, time and quality controls
Reward project managers and team members fairly.
