The decision to diversify Ray-O-Vac into a conglomerate-style organization is suited to the matrix mode of management. That is in significant part because the multiple divisions of Spectrum Brands are not meant to compete with one another but rather to support and reinforce one another. To see why, it may be useful to examine the origins of matrix management. It began in the 1960s in response to the specific needs of the federal procurement system. It was at that time that the U.S. government began to require that private-sector firms awarded research-and-development contracts to have a project-management system. Such a system would allow representatives of government agencies to work and negotiate with one particular person in the firm, the project manager, rather than with a number of its functional or departmental heads. The project manager would have full responsibility for meeting costs and deadlines of the project as a whole. The firm could meet the condition in one of two ways--by abandoning functional groupings and organizing entirely on a project basis, or by superimposing project management on the existing functional structure, thus creating a matrix organizational structure (Perham, 1970). Matrix structures spread rapidly even in organizations not defined by project, including members of the Fortune 500.
Undoubtedly, Spectrum Brands' various lines of business would have different time lines for project management. In a matrix system, the intention would be to focus on projects rather than organizationwide institutional dynamics, while still enjoying the support of nonspecific functional areas of the organization. That is, there would be a multiple-command apparatus that reflects the existence of multiple projects. Meanwhile, at the organizational level, there would be related support mechanisms and an associated organizational culture--for example the MIS department which would facilitate movement of manage...