That’s why most companies require employee reports to be given to all relevant management personnel simultaneously. Both functional and project manager roles can be outlined in the matrix organizational structure. The matrix structure is a type of organizational structure in which individuals are … The matrix structure has continued to be adopted by organizations that need to take on large-scale and complex projects that may not be efficiently completed within a single department in the organization. Efficient Information Exchange One of the advantages of implementing the matrix organizational structure in a business is that it can lead to an efficient exchange of information. The overlaps can lead to turf battles and difficulty in determining accountability. If a company takes a balanced approach, then team members report to both managers. Here’s how to identify which style works best for you, and why it’s important for your career development. The ease of communication that exists with this structure almost always leads to new sharing and collaboration opportunities. The matrix organizational structure creates enough flexibility within the employee pool to create more moments of downtime when correctly managed. Brands like Texas Instruments and Caterpillar require its supervisors to report along project and functional lines to ensure productivity levels remain high. Both managers must be on the same page for it to be an effective structure. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. Matrix organizational structure: advantages and disadvantages When two bosses are at odds with each other, then the project members get caught in the middle of the conflict. Although the matrix organizational structure improves communication within a company, the dual-reporting structure can also create some confusion for some workers. Some workers like to create discord between their two managers because that gives them more freedom to operate independently. The major disadvantages of a matrix structure are: When a business initiates a project, it can be crucial to have an organizational structure in place to define all the aspects of the project. Meetings and bureaucracy can rise as the amount of coordination and communication increases. It creates potential conflicts of loyalty and competition between functional and divisional goals. Supervisors benefit because they have a clear idea about who their direct reports are and what their responsibilities will be each day. The separate chains of command can sometimes have differing managerial directives that come into conflict with each other. Each employee within the human resources department, for example, might report to the human resources department manager. Easily apply to jobs with an Indeed Resume, Active Listening Skills: Definition and Examples, Collaboration between different departments, Combines project and functional management structures, Team members and managers keep their functional roles. This disadvantage of the matrix organizational structure can also make some workers question who is in charge. This disadvantage can lead to lower levels of job satisfaction, higher employee churn, and issues with burnout. If someone from customer service has marketing skills that you need, then you can pull them into the work until it gets done – and then send them back to their regular job duties. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. 21 Advantages and Disadvantages of Non-Profit Organizations, 17 Key Advantages and Disadvantages of Common Stocks, 18 Major Advantages and Disadvantages of the Payback Period, 20 Advantages and Disadvantages of Leasing a Car, 19 Advantages and Disadvantages of Debt Financing, 24 Key Advantages and Disadvantages of a C Corporation, 16 Biggest Advantages and Disadvantages of Mediation, 18 Advantages and Disadvantages of a Gated Community, 17 Big Advantages and Disadvantages of Focus Groups, 17 Key Advantages and Disadvantages of Corporate Bonds, 19 Major Advantages and Disadvantages of Annuities, 17 Biggest Advantages and Disadvantages of Advertising. Each person under that basic system has one boss to who they report directly. This advantage works to increase personal job satisfaction while also helping workers to become more valuable as an employee to promote more job security. It is entirely possible for the workloads of the average worker to grow exponentially in the matrix organizational structure. 5 Advantages and Disadvantages of the Matrix Organizational Structure. That means the project managers can provide leadership support and training by example to the workers who come under their assignment umbrella. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. One advantage of the matrix organizational structure is that people across different functional areas have a better understanding of their coworkers in other areas. It is an issue that can cause all work to grind to a halt. Efficient lines of communication enhance productivity and allow for quick decision-making. It promotes development of managers through increased involvement in … Less downtime occurs for internal resources. Some examples of these conflicts include issues with decision-making, authority over resources, and control of teams or people. ii. There are three common organizational structures, and project managers work in all of them: functional, project, and matrix. That means the traditional hierarchy disappears in the chain-of-command. When planning projects within a matrix structure, you might consider methods to increase employee engagement and hold staff accountable for their work. The matrix structure also allows for better interdepartmental communication and collaboration. These two or more managerial systems intersect on a grid or matrix. Companies gain more flexibility with this structure. Disadvantages. Allowing workers from different functions to work under a project manager to create something unique creates new opportunities to draw upon the expertise of multiple disciplines simultaneously. For instance, the project manager might draw their team members from the administrative, human resources and marketing teams. It isn’t usually the best option for small business owners, partnerships, or sole proprietors, but it could be a viable solution for large companies that need to build more efficiencies into their systems. You might offer opportunities for the involved departments to collaborate, so that each manager and team has a clear understanding of how they may be working together. The matrix structure has the following advantages: i. 1. Although the spirit of cooperation is the desired result, the competitive nature of each person and team can come into play. People also work better together when they have spent time as a functional team. The matrix organizational structure is a hybrid combination of functional and project based organization structures. The matrix organizational structure helps a company manage large, complex projects. 3. Matrix organization is more than a matrix structure. It exposes them to multiple project types instead of confining them to specific departments or team silos. The matrix organizational structure provides an outline for a project that may demand a more global approach. After providing a brief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. Disadvantages of Matrix Organization. Consider setting criteria for communication between the different managers and team members. Matrix organisation has been developed to meet the need of large and complex organisation which requires a structure more flexible and technically oriented rather than the functional structures. It eliminates the confusion of responsibility because the managers expect the same results from each worker, even if they have an assignment on different projects. Oftentimes, when implementing a matrix structure, it may be difficult to gauge employee performance when working on a project. This is in part because team members may be essentially performing more than one role, both functionally and the tasks within the project. The matrix organization structure can also sometimes lead to work overload on team members, since their project workload is often in addition to their regular functional duties. The departmental walls that create competition in other companies disappear, making it easier for workers to move freely between different units. You can ask anyone from any department a question about a project. This structure requires employees to work on their job duties and a project assignment. Disrupting that process can create enough discomfort where individual productivity goes down. The matrix organizational structure can represent an additional significant expense for some companies. Aug 24, 2018 Sep 10, 2018 by Brandon Gaille. That means there are fewer boundaries between groups, fewer silos, and more collaboration because the business has more integration. The traditional hierarchy model was used for centuries because it creates a simple foundation for reporting. That means a stronger atmosphere of job security can lead to people wanting to work harder because they have direct investments in the outcome of each project. The main disadvantage of the matrix structure lies in the doubled supervision of employees. Projects will always continue to come to an end, but project team members and managers may keep their functional roles throughout the project. The matrix structure diagram is one of the most commonly used reporting structures that a company can implement to emphasize efficiency, creativity, and innovation. 3. A matrix organisation is a two dimensional structure, a combination of pure project structure and the traditional functional departments (Fig. This type of organization has a complex structure. By allowing different departments to work together, the matrix structure fosters a more open work environment, ultimately making the organization more dynamic. Some employees might play managers against each other. Outlined in a grid fashion, the functional managers and project managers are role-specific and are included within the matrix. 5. Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). An employee may find … Since the power dynamics between the functional manager and the project manager may not be as clearly defined within the matrix, confusion about the specific managerial roles may arise. iii. Employees may be confused about their role and responsibility if the priorities are not defined clearly, e… 9. READ MORE on www.projectsmart.co.uk 5 Advantages Or Disadvantages Of A Martix Organisation Additionally, team members might have misconceptions about how they are expected to divide their time between their functional duties and their project responsibilities. You can set professional and personal goals to improve your career. 4. Related: Management Styles: Overview and Examples. 1. 7. The matrix structure is generally considered the toughest organizational form to work in, due to the conflicting pulls on resources. The project managers work across the matrix, or horizontally, bringing together team members from different departments to work on and offer input on a single project. This sometimes can cause conflict if they are asked to carry out tasks from both areas. Some key details to consider when outlining your project within the matrix may include: Consider how you will outline each expectation of the managers involved with the project. It can shift between the needs of the various projects under development and the company’s functional units. Employees in the matrix organizational structure are typically accountable to more than one direct supervisor. Instead of forcing people into roles that require them to improve their talents or skills to be productive, each person can focus on their strengths instead. Similarly, the matrix organizational structure may include employees from across different departments to work collaboratively on projects. Team members may need to perform their functional role within the company and perform separate tasks for the project manager. Matrix organization for a small and large business: An outline, advantages, disadvantages, conclusion. Within the matrix organizational structure, the functional manager might manage their team by department, typically outlined vertically on the matrix. The matrix organizational structure encourages employees to continue their career development process. One of the most significant advantages of the matrix organizational structure is its ability to share highly-skilled resources. If you choose to implement the matrix organizational structure, you might consider how to address key details as they arise when outlining manager and team roles. The decision-making process can be slowed down. Then the disadvantages of cost and complexity might be enough to push some businesses away from this foundational choice. Employees might suffer burnout or overlook or fail to complete tasks or have their quality of work suffer due to time constraints. The goal of this method is to have each person share their experiences and expertise freely so that everyone benefits from their perspective. Additionally, you may consider addressing any employee misconceptions about what the project entails overall, as well as what tasks they may be responsible for. That means a diverse approach to thinking and creativity develops within the company. Coaching duties might get passed back and forth until everyone decides that it is a matter not worth pursuing. 8. If there is more than one boss supervising a worker’s performance, then the details that get moved up the chain-of-command can get jumbled quickly. If a worker receives conflicting messages from their bosses, then the end result is a reduction of quality and quantity in their work. Departments work closely together and communicate with each other frequently to solve issues. By working in a matrix organisation the resources are only seconded to the project for limited amount of time. For instance, you might consider weekly chats through an office communication app to get a quick overview of the project’s progress from all departments involved. 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