MATRIX MANAGEMENT OF PROJECTS AND POWER STRUGGLES - A CASE-STUDY OF AN RESEARCH-AND-DEVELOPMENT LABORATORY

Matrix management of projects, it is argued, may generate normative conflict, prompting project and functional managers to engage in nonconformist conflict behavior which challenges the division of authority in matrix. An analysis of such struggles has been lacking yet. The present study fills this gap. Distinguishing between retreatism, ritualism, manipulation and rebellion, forms and outcomes of such power struggles are explored in a case study of the R&D establishment of a multinational corporation. A so-called balanced matrix was applied, in which power between both kinds of matrix managers is equally balanced. Analysis shows, how each party tried to shift the balance of power toward its side - mostly in vain however; in the end, the ''hot'' war between contending parties gave way to a mixture of ''cold'' war and willing cooperation. From the case data, organizational features other than matrix design as such are identified, that seem to affect the chances of mutual conflict escalating. Finally, it is conjectured, that types of matrix other than the balanced matrix are less susceptible to such intense power struggles, as the balance of power is not nearly equal.