Leader member exchange in a matrix organisation : influence on needs, role ambiguity and job satisfaction

Abstract

Changes in the global economy require swift action by organisations to respond to new demands, as such the organisational design of choice within the last decade has been the matrix structure. Flaws with the matrix organisation design are widely cited, but the prolific adoption leads to a conclusion that the benefits must outweigh these flaws. This research focuses on the interpersonal challenges arising from the dual reporting structure which leads to unclear roles and responsibilities and ambiguous authority. Given that managers within the matrix structure have different goals, how do they influence project team members to execute project responsibilities which align with organisational goals? The objective of this research was to uncover how the dyadic relationships in a dual leader reporting structure, employed in a matrix organisation affect work attitudes. The research conducted was quantitative and descriptive in design. The outcomes of the literature review were used as input into the questionnaire development which was aligned with the research objectives. Self-administered questionnaires were distributed to employees operating within matrix structures in a large multinational company operating within the energy and chemical industry. Quantitative data from 148 project personnel was collected and analysed. Individual leader member relationships were strong predictors of certain work attitudes. A stronger quality of relationship between the project personnel and project manager showed a lower role ambiguity whereas a stronger quality of relationship with the functional manager leads to a greater fulfilment of basic psychological needs (competence, autonomy and relatedness) and higher job satisfaction. Furthermore the alignment and misalignment between perceived leader member exchanges between the two managers was able to explain variances in outcomes beyond that of a single leader member exchange. The alignment between project personnel and project manager, and project personnel and functional manager were associated with perceived basic psychological needs and job satisfaction such that these outcomes are higher when alignment is high rather than low. When alignment is high it can be shown that role ambiguity is the lowest.