Functioning and Management in an Organizational Matrix: A Psychological and Managerial Perspective By: Ya’ara Eldama, Amnon Katz & Shoshi Setat The writers of this article belong to “Gaya Organizational Development.” Ya’ara Eldama- has a graduate degree in Organizational Employment Psychology from the University of Haifa, is an organizational consultant and is a facilitator for groups of managers. Amnon Katz- a clinical psychologist, the CEO of Gaya Organizational Development, accompanies organizations both within and outside of Israel. Shoshi Setat- psychologist and organizational consultant, specializes in personal consultation for managers and building and development of teams. We extend our gratitude to Efrat Ben-Nachum Navo, an organizational consultant in our organization, who has contributed to our field. “Gaya” works in conjunction with the MBA program for Business and Management Psychology. Content and psychological counseling organizations in the curriculum at the College of Management. The “organizational matrix” phenomenon, where organizations transition from a hierarchical structure (the traditional outlook) into a matrix form, has become more forgotten in recent years. Furthermore, there are many challenges in transitioning into more of a matrix form, such as: dealing with changes in understanding the managerial position (shifting from management based on authority and control, to management based on cooperation and the need for interpersonal relationships); dealing with multiple conflicts as a structural component in the matrix; having to deal with rejection, self-esteem issues and more. 1 The goal of this article is to analyze these challenges and attempt to understand the experience of managing in a matrix. In addition, to offer effective coping skills to help the manager get through challenges and deal with change. First this article will attempt to describe, what is a matrix? How does it differ from the hierarchical (traditional) structure and what are its advantages? Furthermore, the article will focus on the aware and unaware coping strategies of managers in an organizational matrix. Finally, several effective coping strategies have been found in several organizations, to work in an organizational matrix will be mentioned. The article is based on the professional experience of the authors, whom work in Gaya, which works with organizations that have successfully overcome change, with the proposed literature. Background: The build of the matrix, the definition, characteristics and goals Gottlieb (2007) explains in his book “The Matrix Reloaded,” how an organizational matrix attempts to gain from the benefits of a divisional build and a functional build. The organizational matrix divides simultaneously part of the organization into activities and projects such as a divisional organization would (for example according to products, customers, geographical location), and another part of the organization focusing on functional guidelines (for example marketing, research, development, logistics). Each divisional group is in contact with a functional group, and the employees are required to report to two managers at least: a functional group manager, and project financing or business manager2. Organizational matrices can exist temporarily in order to achieve specific goals (for example, a team of specialists created to deal with a specific problem, however when it is solved, the team is dismantled and dispersed to functional groups in the organization or to positions to complete other organizational tasks). More permanent matrix designs are integrated when there are product lines consistent with the organization (for example, a product manager is in charge of creation and development of the product, while his team works on additional products from time to time). 2 Applications of matrix organizations can vary depending on the developmental stage of the organization, it’s organizational culture and its’ unique characteristics. Some organizations are organically built in a matrix, as it is an essence of their work and of the people who work there. Other organizations decided to become a matrix organization, as their previous design did not achieve their desired goal. A food organization is a type of organization which can make this transition for example, 3A matrix structure is a strategic move aimed at maintaining a leading position in the business market. Switching to such a structure for the purpose of benefits will increase the work processes, allowing the business to “stay for generations.” Benefits of a matrix organization The matrix organization has several key potential benefits: 1. Satisfying an appropriate response to the requirements of the corporate environment- the logic underlying the adoption of the matrix and its countless forms, comes from the assumption that the behavior of complex business environment requires a complex organizational structure and is more flexible. This structure allows for the creation of specialized teams to be created from members throughout the organization, thus allowing them to perform special projects. This allows for specialists throughout the organization, whether it’s organizing a task force or the existence of permanent headquarters for a staff of experts. 4Organization and coping with external complexities is flexible, and can use different resources in the organization. 2. Accelerating decision making and speed of work- work and team responsibility characterize the matrix structure, and thus avoids a “ bottle neck organization,” which can lead to most of the responsibility falling in the hands of one member or one function. Hence this can increase the speed of work and decrease organizational bureaucracy2 3. 3 3. Preventing the tendency to focus on the goals and local interests- within the matrix exists an overlap in responsibilities therefore requiring greater cooperation between the various units in the organization. Consequently there is greater potential for the development of a systematic view amongst members of the organization and reduce the tendency to focus on goals and local interests of the unit of which they belong 4. 4. Improving communication and flow of information in the organizationunlike the hierarchical structure, which is “flat,” in regards to interaction, the matrix structure is filled with interaction throughout the organization (not just with one group, which occurs in hierarchical organizations). The great number interactions allow for an improvement in organizational communication and the flow of information throughout the organization. 5. Reducing costs for companies across Israel or globally- matrix structures may be especially effective for companies nationwide or globally. These organizations have difficulty to develop teams of experts in any divisional geographic location around the world. The matrix allows employing a team of functional experts, and when there are new specific projects, which require their expertise, they can be allocated to specific teams, without the requirement of the company holding a regular pool of experts in each area. The result is a more effective usage of the company’s experts, allowing for the company to respond to challenges in a more cost-effective and systematic manner2. Matrix-based environment management The environment of the matrix has created a unique “Zen” feeling known as “the matrix management.” This management system has presented the organization's executives new job requirements and varied challenges. This article focuses on challenges and difficulties that stand before the matrix and the manager of the matrix, while observing the implicit and explicit processes passing the manager. 4 Significant change in the perception of the role and form of “traditional management” As part of the counseling process in a large industrial manufacturing company, the logistics manager raised difficulties she had to deal with due to the transition to the matrix management. Prior to the transition, each of the five geographic units of the organization conducted its logistics independently (including the manager). Each logistics manager was only required to report to his or her immediate manager. Because of the transition to the matrix structure, one logistic manager maintained all the responsibility of all five units of the company. The manager was faced with a problem when he had to organize trucks to send shipments between all five units: each location’s logistics manager would not respond to his demands or adapt themselves to the proposed schedule by the manager. The fact that they had to answer to an additional, external manager and consider her interests created anger and frustration. To the manager’s surprise, several of his trucks returned to him not completing their task. As he tried to resist and exert more power, the managers only resisted more. This story exemplifies a problem a matrix manager can face. Managing from the matrix does not only change the roles, but also requires adjustments to the administrative role concept. Many managers learn that the techniques they used until now become less effective in a matrix structure. If a logistics manager was once used to being in power, authoritative, and in control, he must now adopt a new management method based less on authority and more on cooperation and shared responsibilities. He cannot stay on the old aggressive position and give instructions. This produces a different kind of working relationship, shifting from the status of being “courted” to being “wooed.” 5 When observing organizations that have shifted into a matrix structure, you can find many managers that experienced the feeling of a gap between understanding this new recipe, and the application and emotional understanding of the recipe. Although they speak and understand the language of the matrix, they have trouble actually applying it. In other words, the change occurs at the cognitive level, however in the behavioral and emotional level, a gap still exists. Hence, many managers become frustrated as they feel that they have been stripped of their authority, and have only gained more responsibilities. Thus, the initial experience are feelings of loss: loss of power, loss of status, loss of control; “The dispossession of territory”; and loss of professional face. Dealing with rejection and self-esteem issues In the presented example, the logistics manager whom were use to working in an autonomous fashion in a hierarchical structure in their local units, are now required to work with new additional units. Furthermore, as they were once their own masters and conducted their logistics internally, they must now answer to an external force that may conflict their interests and make decisions for them. This situation often creates feelings of frustration and anger, which tend to be directed towards the matrix manager directly or indirectly. Such situations can cause the following responses: “Who doesn’t know my territory?” “Why is he getting involved in my business?” “He’s going to teach and conduct me?” “What’s his advantage on us?” These questions are echoed by the matrix manager and involve the issues of value: “Am I really needed?” “What is the added value of my role?” Many times the matrix manager may feel as the “fifth wheel” of the company, or as if his position is “not recognized.” Moreover, rather than receiving complements and admiration from his subordinates in the hierarchical structure, he now receives negative responses. Loss of awe and admiration from others can produce anxiety arousing such questions as "am I appreciated?" "Am I perceived as meaningful?” As well as making people "hungry" for recognition and appreciation. 6 This complex situation created by the matrix, requires the manager to develop the ability to cope with hostile responses and aggression directed at him and not be "destroyed" by them. He must also learn to cope with the experience of rejection and feeling useless while developing resistance against them. Many managers will turn to a higher authority looking for answers (“escalation”). It is important to understand that turning to a higher authority is legitimate, however should not be a key source. In other words, the manager must know to conduct difficulties independently and not to be afraid to deal with them and be able to make decisions for himself. Dealing with multiple conflicts as a structural component in the matrix A matrix-based management is capable of creating multiple conflicts and economic conflicts amongst managers. This is because multiple potential conflicts are part of the matrix. For example, you can find a potential conflict between a functional manager and his corresponding project manager. These managers share a common responsibility for organizing projects and there is a mutual dependency between them. This contrast creates mutual tension increased by possible conflict between various interests: project managers feel responsible to meet the objectives and time frames, while functional managers are more concerned with the effectiveness of their departmental resources (human and material) and how to preserve them in good condition2. As a result, a conflict can be created in which each side imposes its will on the other. Managers that are accustomed to the previous hierarchical structure tend to focus their loyalty and concern to the objectives and interests of their unit, thereby finding it difficult to work together as in such a complex situation. 7 Dealing with multiple significant changes in the role and perceptions of the world It is evident that the transition to the matrix requires many changes: in definitions and perceived role in the work with subordinates, interfaces, capabilities and skills required for the job, etc. This is a significant change in the existing situation and all that was familiar and known to date. Many find it difficult to accommodate such a change, since it requires the individual to abandon everything he knew and was accustomed to it so far, thus having to adopt a new mode that appears to him as alien and unnatural. Gottlieb (2007) claims the unique challenge to changing to a matrix lies in the “basic assumptions,” regarding the organization and its culture. He claims that most companies are built in a hierarchical fashion (including the family unit), and we thereby see the structure of a hierarchy as being natural and normal. Transition to the matrix challenges our most basic assumptions about what is natural and normal in our cultures and societies. The change requires people to cast doubt on what once seemed stable and set in their world. As a result, there are attempts to break the hierarchical structure, which tend to evoke anxiety and difficulty by being encountered with much resistance at first. High levels of anxiety and confusion may produce a tendency to split perception of reality, that is, the perception of situations and people in terms of "black" and white"," good "and bad", "worthy" and “unworthy", those that "give" and those that “receive” etc. (5 this protection serves us in organizing the chaotic experience. This situation often combines schizo-paranoid; a term initially coined by Melanie Klein). In our opinion, the challenge in consulting is to first provide a space for reflection and inquiry, which enables people to identify the consequences that creates the change. The goal is to try to make the individual more aware, integrated, and provide him with tools and skills to deal with the complex matrix. 8 Effective matrix-based management: “The keys to success” and suggestions for coping mechanisms In the following section, we will discuss several keys to success and suggestions for coping mechanisms that have worked for managers who have transitioned into a matrix structure. In order to “crack the matrix,” and work in it effectively, manager must undergo a changes at the conceptual level, interpersonal level change and behavioral interpersonal level. A deeper understanding of the environment of the matrix, its refinement and its improvement of tools of working in this environment, are essential and necessary components, which can enable managers to regain a sense of control into their own hands and succeed in the matrix format. With this, its important to note that the keys to success and their degree of importance may vary from organization to organization depending on the type of change and the nature of the organization, for example there must be an alignment with the unique characteristics of organizational culture and organizational members. Shifting of the locus of control Firstly, the manager must change his mode of thinking from “I am controlled by the matrix”, to “I control the matrix.” Thus shifting from external control to internal control. Working with matrix-based organizations, individuals can many times feel that the subordinates feel “the managers have made a mess of things,” and the need to define areas of responsibility, authority and generate solutions to problems that arise. With this, in order to effectively manage a matrix requires adopting a more active role and a wider understanding of the manager because he must create the solutions on his own. The manager must release himself or herself from the attitude that “somebody else” will solve this problem created by the matrix. 9 Changing the perception of the role Changing to a matrix format requires the manager to change his role perception. Managers who have succeeded in the matrix understand that they must be willing to release some of their power and status, while using integrative cooperation. The joy of the work stems from the valid connection, and interpersonal power source of the manager's ability to harness and mobilize workers. Amongst the insights that the logistics manager (from earlier in the article) arrived at, was that he must personally go and create interpersonal relationships with each of the five other managers. He now understands that sending the order “from above” will not help, and as the matrix manager he must create tight interpersonal relationship with his subordinates. It is important to understand that any major change (as explained in Bridges book “Transitions and New Beginnings” 6) for managers requires time, as it is a gradual process. In regards to this, it is interesting to be reminded of a matrix-format change experienced by a principal that participated in a seminar. Managers in the seminar were first asked to draw a drawing called “myself as a manager.” The principal drew a stick and a carrot. At the end of the seminar (explaining the matrix-based structure), a month later, she claimed that she would have drawn the drawing differently. The amazement of the principal stemmed from the understanding that the management concept expressed in her drawing is not effective or suitable for the matrix. This new situation made her feel the need to act less authoritative and conduct her dialogues in more interpersonal manner. These values were not expressed in her initial drawing. In other words, the principal shifted her role perception. The concept of “the stick and the carrot” is much more suitable for a hierarchical structure and is now left behind for it not suitable for matrix-based management. 10 The matrix can be cracked only when exiting the maze: understanding the matrix, the concept of the matrix and the “win-win” mindset In order to appreciate the implications of the matrix and to act more effectively in it, the manager of the matrix must be able to exit the matrix and observe the organization at the macro level, as well as the entire system. Part of understanding the matrix understands that when acquiring such a system, there will be conflicts and loss of control. The wisdom lies in understanding that conflicts do not necessarily mean something bad for the organization, and one should separate between personal conflict related to a position, to personal conflict related to the individual. Developing a systematic view of the organization allows for viewing possible complexities and encourages the change from “we” and “them” to “all of us together”: which considers the interests of having a “win-win” attitude. All these together create emphatic feelings and respect between individuals, which allows efficient solutions of conflicts and lead to cooperation. Furthermore, the understanding of the complexity the matrix can help an administrator to contain the emotional complexities it brings with it, and allow it to better deal with issues of value and rejection. Interpersonal relationships as part of the management role perception The key words in managing an effective matrix are: awareness, interpersonal sensitivity and interpersonal relationship. From this there are several concepts and interpersonal skills we should develop and work on: Creating dialogue and avoiding isolation- it is important to maintain a regular and ongoing dialogue frequently with various interfaces, mainly with interfaces charged and that have a high potential for collisions. You should discuss "gray areas" and non-ambiguities, but also initiate a meeting from time to time on what does work. It is important to avoid isolation. Increasing self-awareness and awareness of others- one must have an internal dialogue asking questions such as: “What are my internal needs?” “What are the internal needs of my contacts?” “What is it that each side brings to the conflict?” etc. 11 Attunement to the other- adopting openness, sensitivity to the needs of the other listening, requires asking questions such as: “Do I understand my own needs?” “Am I aware of my place?” “What is the range of my relationships?” “What is the added value of our conjoined work?” etc. A manager can perform more freely if he can release himself from his ego and improve his interpersonal relationships. This is a very difficult task, which can at times require releasing ourselves from managing in a normal and “automatic” fashion. It is important to understand that the attunement of the other does not mean giving up on personal needs, however it does require a deeper understand of the opposing side and their needs in order to create a good working environment, thereby achieving cooperation and a “win-win” situation. Continuing work based on mutual trust- having all of the above helps to develop mutual trust between the parties. However, it is important to understand that the work on mutual trust must be sustained and is unceasing. Conclusion Switching to matrix-based management requires many changes. It requires from a manager to adapt to a new method of management, which can potentially be challenging and problematic. However, “cracking” the matrix is not impossible. By developing awareness and understanding of the complex situation of the matrix and its established characteristics, and improving the work process through personal and interpersonal elements, matrix management can become much more effective. Processes of organizational development consultancy (as an accompaniment managers, personal counseling, workshops that focus on topics of matrix management, constructions and development teams, etc.) are featured as significant tools, which can help the manager and organization adapt more quickly to the transition of the matrix (emotionally and practically), and hence work more effectively in this format 12 References 1. Gottelieb, M. R. (2007). The matrix organization reloaded: Adventures in team and project management. Westport, CT : Praeger Publishers. 2. Numerof, R. E. and Abrams, M. N. (2002). Matrix management: recipe for chaos? Directors & Boards, 42(4). 3. Dinsmore, P. C. (1984), Whys and why-nots of matrix management, In D. I. Cleland (Ed), Matrix management systems handbook. New York: Van Nostrand Reinhold. 4. Bartlett, C. A., & Ghoshal, S. (1990). Matrix management: Not a structure, a frame of mind. Harvard Business Review. 5. Segal, H. (1964). Introduction to the work of Melanie Klein. NY: Basic Books, inc., Publishers. 6. 8002( . ו,)ברידג'ס. להבין את משמעות השינויים בחיים ולהפיק-מעברים והתחלות חדשות מהם את המרב. מטר הוצאה לאור. 13