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Figure 7.7

An example of a matrix structure at a software development company. Business
analysts, developers, and testers each report to a functional department manager and
to a project manager simultaneously.
Despite these potential benefits, matrix structures are not without costs. In a
matrix, each employee reports to two or more managers. This situation is ripe for
conflict. Because multiple managers are in charge of guiding the behaviors of each
employee, there may be power struggles or turf wars among managers. As managers
are more interdependent compared to a traditional or product-based structure, they
will need to spend more effort coordinating their work. From the employee’s
perspective, there is potential for interpersonal conflict with team members as well as
with leaders. The presence of multiple leaders may create role ambiguity or, worse,
role conflict—being given instructions or objectives that cannot all be met because
they are mutually exclusive. The necessity to work with a team consisting of
employees with different functional backgrounds increases the potential for task
[2]
conflict at work. Solving these problems requires a great level of patience and
proactivity on the part of the employee.
The matrix structure is used in many information technology companies
engaged in software development. Sportswear manufacturer Nike is another company
that uses the matrix organization successfully. New product introduction is a task
shared by regional managers and product managers. While product managers are in
charge of deciding how to launch a product, regional managers are allowed to make
[3]
modifications based on the region.
Boundaryless Organizations
Boundaryless organization is a term coined by Jack Welch during his tenure as
CEO of GE; it refers to an organization that eliminates traditional barriers between

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