Between Hierarchy and Matrix: Human Resource Allocation in Flexible Organizations

A vital function of organizational structure is the allocation of human resources to tasks. Based on an empirical study of five organizations in the state sector in Norway, we identify and analyze a structure of allocation that potentially constitutes a theoretical category between a unitary, hierarchical structure and a resource/task matrix. The core trait of this structural category is the partial overlap of task and resource management among middle managers. Such partial overlap provides the basis for analyzing other structural dimensions: -the principle of grouping of resource units, -mechanisms of resource allocation from resource units to task units, -task management, and -challenges for middle managers. The main advantages are a higher degree of resource flexibility, the weakening of rigid “employee ownership” at the unit level, and decisions and solutions based on cross-disciplinary and cross-unit competencies. A key challenge is to address the new ambiguities and lack of role clarity that such a structure implies.