ABSTRACT

A rational and legal system of regulations specifies positions with defined powers of authority attributed to them. It is this source of power that provides primary means by which companies and public bodies that constitute modern industrial society can operate. The effect is to divide the organization structure into vertical slices and this phenomenon is well known as the Silo Effect'. The first point to make about a Matrix Organization is that it is not a coherent hierarchical structure. The Matrix is favoured since it offers a compromise that mitigates the impact. Such aspects are best addressed in the context of organizational culture. For this reason it is known as a Functional Organization whereas Task Force Organizations are more appropriate for project work. If it is deemed that the functional manager has the higher authority then the organization reverts to a Weak Matrix'.