Motivating potential of performance management systems in matrix organizations

The main purpose of this report is to identify and describe the type of behaviors that should be promoted in a matrix organization. This report shows how the performance management system is a very important tool in promoting these behaviors. The report starts with an introduction to the relationship between the success of a matrix structure and the appropriate performance management system followed by the definition of important concepts in this topic. Next, the report provides general recommendations to the leaders of matrix organizations with respect their performance management system. Finally, a case study of a company with this type of structure is analyzed.