There can still be a lot of conflict in the workplace. 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. Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations. It occurs because team members often get tasked with additional responsibilities because of their identified expertise that goes beyond their regular job duties. The ease of communication that exists with this structure almost always leads to new sharing and collaboration opportunities. Oftentimes, when implementing a matrix structure, it may be difficult to gauge employee performance when working on a project. Managers can work to avoid this issue by examining work assignments in advance. 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. It can be cheaper to implement the matrix organizational structure. When you have multiple managers in place for individual workers, then there might not be any determination on that person’s professional development. 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. It encourages more employee development. Matrix structures can help provide both flexibility and balanced decision making, but at the price of complexity. One of the most significant advantages of the matrix organizational structure is its ability to share highly-skilled resources. 15 Hierarchical Organizational Structure Advantages and Disadvantages. Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). This structure requires employees to work on their job duties and a project assignment. Some workers like to create discord between their two managers because that gives them more freedom to operate independently. This issue with a matrix organizational structure can lead to a loss of clarity on who becomes responsible for each employee’s performance evaluation. Within the matrix organizational structure, the functional manager might manage their team by department, typically outlined vertically on the matrix. An employee may find … 2. The matrix structure diagram is one of the most commonly used reporting structures that a company can implement to emphasize efficiency, creativity, and innovation. confusion between managers who are involved with projects that are outlined by the matrix. 3. It is an advantage that can improve the chains of command while reducing the costs of operating an independent training unit within the company. In some cases, for example, a project manager might play more of a coordinating role. That means there must be a high degree of cooperation between the project and functional management to ensure the mission and vision of the organization remain a priority. That means the entirety of their professional skillset begins to experience growth. The matrix structure is generally considered the toughest organizational form to work in, due to the conflicting pulls on resources. These structures are reported to be good for a productive resource coordination. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. However, even if some projects may not be classified as large scale, they can still be incredibly complex. The major disadvantages of a matrix structure are: Both the functional and project managers oversee members of the same project team, which means that team members effectively have two different bosses who they may report to directly. When using the matrix organizational structure, the goal is to have two or more managerial sets focus on a specific area of the business. 1. This could create a psychological stress among these individuals as an element of uncertainty would always exist. 9. It strengthens job security within the organization. 4. Do you know the three types of learning styles? Line management conflict can be a disadvantage of a matrix organisation. Let us discuss the various cons in this context: Higher Ambiguity or Confusion: The team members may not be apparent on whom to report, whose orders to follow, and who will provide them guidance. A matrix organisation is a two dimensional structure, a combination of pure project structure and the traditional functional departments (Fig. For example, if you work in administration, you might report to the administrative manager, who may then report to an executive director. This advantage works to increase personal job satisfaction while also helping workers to become more valuable as an employee to promote more job security. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. The matrix organizational structure provides an outline for a project that may demand a more global approach. This standardization can create some issues with job security if artificial intelligence can take over repetitive tasks. 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. Most companies find that it is cheaper to implement the matrix organizational structure than it is to establish a dedicated project team. 3. You can set professional and personal goals to improve your career. The diversity that develops from the matrix organizational structure often makes the teams created in this format stronger than those that are purely functional in their overall approach. Additionally, you may consider addressing any employee misconceptions about what the project entails overall, as well as what tasks they may be responsible for. Each person under that basic system has one boss to who they report directly. Though popular, but many critics believe that matrix structure usually harms the organizations. There is a cultivation of a diverse set of skills and perspectives. 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. That means a diverse approach to thinking and creativity develops within the company. 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