For the practical implementation of massive multiple-input multiple-output (MIMO) systems, the hybrid processing (precoding/combining) structure is promising to reduce the high cost rendered by large number of RF chains of the traditional processing structure. The hybrid processing is performed through low-dimensional digital baseband processing combined with analog RF processing enabled by phase shifters. We propose to design hybrid RF and baseband precoders/combiners for multi-stream transmission in point-to-point massive MIMO systems, by directly decomposing the pre-designed unconstrained digital precoder/combiner of a large dimension. The constant amplitude constraint of analog RF processing results in the matrix decomposition problem non-convex. Based on an alternate optimization technique, the non-convex matrix decomposition problem can be decoupled into a series of convex sub-problems and effectively solved by restricting the phase increment of each entry in the RF precoder/combiner within a small vicinity of its preceding iterate. A singular value decomposition based technique is proposed to secure an initial point sufficiently close to the global solution of the original non-convex problem. Through simulation, the convergence of the alternate optimization for such a matrix decomposition based hybrid processing (MD-HP) scheme is examined, and the performance of the MD-HP scheme is demonstrated to be near-optimal.