If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. Matrix Organizational Structure: Advantages, Disadvantages & Examples A matrix organizational structure is one of the most complicated reporting structures a company can implement. Here are some disadvantages to trying to run your project in the matrix. For instance, the project manager might draw their team members from the administrative, human resources and marketing teams. They also create uncertainty within the workplace, as workers may not know who needs to … Related: Management Styles: Overview and Examples. Disadvantantages of a Strong Matrix Organizational Structure. There can sometimes be several key disadvantages to using a matrix structure: One common disadvantage of the matrix structure can appear as confusion between managers who are involved with projects that are outlined by the matrix. Imagine that you have three departments in an organization. Experts and equipment can be shared across projects. These two or more managerial systems intersect on a grid or matrix. The matrix structure can allow a company to maintain its departmental structure while projects are in progress. Furthermore, with the integration of multiple managers and team members, decisions that require multiple steps, for instance, in quality assurance, can be slowed down when guided by the matrix. More importantly, it may be difficult to know who has the final say on decisions which need to be made. Definition A matrix organizational structure is a company structure in which the reporting relationships are set up […] For example, a company could have human resources, marketing, operational and finance departments. 1. Matrix organisation is also known as grid organisation, project or product management. TRADITIONAL -Identify simple structure, bureaucratic, matrix structures. Additionally, the matrix structure is composed of both a traditional hierarchy of management, where employees are managed by a functional manager, as well as additional project managers who can manage employees across different departments. In an outlined matrix structure, both the functional manager and project manager have equal authority over project team members, and each may have roles outlined within the matrix. The essence of matrix organisation is the combining of functional and product patterns of departmentation in the same organisation. For instance, the marketing and finance department may be consulted for working on the budget and any strategies for a new ad campaign. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. The matrix organization structure has become popular and has many business advantages. Matrix structure mainly encompasses functional and project structures. Instead of being limited to their own silo, workers can be moved from place to place when demands make it necessary. 2. Popularly known as matrix structure . The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. When you have more options available for assignments, then the workload becomes more consistent. That makes the managerial roles be fluid instead of fixed, making it possible to utilize leadership strengths of managers in better ways. The matrix organizational structure originally arose out of the aerospace industry in the 1960s when firms who wanted to contract with U.S. government employees needed to create specific charts to show the structure of the project management team. Their functional manager can help them with their knowledge and skills, and the product manager can give direction to their work and efforts. For example, the project manager might be expected to report on the overall progress of the project while the marketing manager might be expected to produce a result. Shell’s organizational structure is very complex. In today’s environment mostly organizations are combination of different organization structure. Advantages of a matrix structure A matrix structure has its pros and cons. 3. Businesses weighing the matrix organizational structure pros and cons usually find at least occasional value in using a matrix. Advantages of a matrix organization. Products and projects are formally coordinated acros… In a matrix structure, individuals work across teams and projects as well as within their own department or function. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 15 Matrix Organizational Structure Advantages and Disadvantages, 15 Hierarchical Organizational Structure Advantages…, 15 Collaborative Structure Advantages and Disadvantages, 12 Hot Desking Advantages and Disadvantages, 16 Limited Liability Partnership Advantages and…, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. Advantages of Matrix Organizational Structure The matrix structure is widely used in the organizations which are large and diversify into different product lines. Many managers need to work together, on teams of their own, to ensure that workers are completing their work assignments as expected.
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