In a matrix structure, reporting relationships comprise a grid, and each individual typically reports to two managers. In choosing a companys organizational structure, management is searching for the one that will bring the companys moving parts together into a wellcoordinated, efficient and effective unit. Combining two organizational structures into the matrix type solves a lot of problems. Organization structure is the pattern in which various organizational activities are divided and assigned among positions, groups, departments, and divisions and the coordinating mechanism among these activities to achieve organizational objectives. Pdf characteristics of matrix structures, and their effects. Best practices in matrix organizational structures gssa georgia.
Fig 5 shows an example of matrix organizational structure of a construction company. A matrix organizational structure is not a onesizefitsall solution. When orgchart experts list the advantages and disadvantages of matrix organizational structure, the effective use of employees is a big advantage. The structure facilitates the horizontal flow of information and skills. There are advantages and disadvantages that need to be understood to know if its the right one for the organization. Advantage more specialized in certain fields, communication is excellent because of the knowledge one has about the function of the job, easier to work as a team to get better results. The advantages and disadvantages must be weighed and the. Organizational refers to how individual and team work within an organization are structure coordinated.
Implementing a matrix is a complex process, involving more than just changing the organizational structure, systems, culture, and behaviors over time. Meetings and bureaucracy can rise as the amount of coordination and communication increases. Time limit factor of the matrix structure creates problems in maintaining wide coordination among all the mechanisms of the organization. Organizational design and structure advantages and disadvantages each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals.
However, it could also give rise to different ones. This article discusses matrix organizational structure advantages and disadvantages. The matrix organization structure can deliver this, provided people have the skills to make the matrix work. The management of a company will build an organizational structure to help achieve the objectives of the company. Due to the complexity of the matrix organization structure, some employees may be confused as to who their supervisor is. Understand the advantages and disadvantages of mechanistic and organic structures for organizations. It is essential to involve both functional and project specialists. Matrix departmentalization may slow down decisionmaking and thus all managers must understand the rules of the game. Apr 07, 2017 the key difference between matrix structure and functional structure is that matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions whereas functional structure is a structure that divides the organization based on specialized functional areas such as production. Organizational structure and change semantic scholar. Our jobs as leaders is to help deliver the advantages and.
In a matrix management system, an individual has a primary reportto boss while also working for one or more managers, typically on projects. Confusion on authority and responsibility is rampant. When there is a hierarchical organizational structure in place, teams tend to stay within their defined structures. A matrix organizational structure is one of the most complicated reporting structures a company can implement. It is not without its disadvantages, which are discussed below. Aug 30, 2019 matrix management is commonly used in organizations to share employees and resources across functions.
Describe how the elements of organizational structure can be combined to create mechanistic and organic structures. There are several advantages and disadvantages of adopting a functional organizational structure. A project manager has been given a fixed time to coordinate all the mechanisms to complete the given work within the fixed time. The functional organizational structure groups employees according to broad business activities, resulting in departments such as finance, marketing and production. There are three common organizational structures, and project managers work in all of them. Within a matrix, an individual may have multiple supervisors because their work responsibilities are no longer linear. The design get popularity in 1970s and 80s when big companies like ibm, hp, nestle and citi bank used this structure. Types of organisation structure with advantages and.
Matrix organizational structures one alternative to a traditional hierarchical structure is a matrix structure. Matrix organizational structure of a construction company example ganesh 20 8 table 4 advantages and disadvantages of matrix organizational structure. You dont often hear the term vertical organization structure. From the hierarchal organizational structure to flatter, less bureaucratic structures and the teamoriented matrix, all organizational structures have advantages and disadvantages in key areas. This is a type of organizational structure which facilitates a horizontal flow of skills and informations. Read on to learn why a company might implement a matrix structure and the advantages. It is known to be flexible, nimble, fast, and may lead to multiple reporting lines.
When a matrix organizational structure is implemented within the workplace, then there are crossbusiness, crossfunctional units which are working together. The 6 key advantages and disadvantages of a matrix organization. Everything you need to know about the types and classification of organisation structure. Matrix organizational structure in project management. Sep 15, 2016 a matrix organisation structure is one where there are multiple crossfunctional, crossbusiness unit groups. Our jobs as leaders is to help deliver the advantages and prevent the potential disadvantages. The 6 key advantages and disadvantages of a matrix. Nov 21, 2018 from the hierarchal organizational structure to flatter, less bureaucratic structures and the teamoriented matrix, all organizational structures have advantages and disadvantages in key areas. These disadvantages may not always persist in an organization. For each matrix team or subgroup, there is one functional. They also create uncertainty within the workplace, as workers may not know who needs to receive information about the work theyve done. List of the disadvantages of the matrix organizational structure. What are the pros and cons of vertical organizational. Lets take a look at the advantages and disadvantages of each so you know what youre up against when you join a new structure.
This essentially means that although this organisational structure has many advantages, the disadvantages seem to play off against the advantages, thus leading to paradoxes. The same seminal study of matrix organizations also notes their disadvantages. Matrix organizational structures propose two management structures in single organization. Identifies typical disadvantages of the matrix organization with the focus on project and functional managers, functional experts, and. Ford and randolph 4 suggested a number of paradoxes between the advantages and disadvantages of matrix. What are the disadvantages of organizational structure. Pdf characteristics of matrix structures, and their. In this type of organization, for example, there may be a marketing. Pros and cons of 3 project organizational structures. The top manager heads the entire matrix and balances the dualchain of commands.
Jan 17, 2015 matrix structure demands a high level of inter personal relations and skill. Hence to fulfill this vision nsa has design a new structure. In doing so, it defines the mo and describes its operating. Oct 29, 2018 there are three common organizational structures, and project managers work in all of them. It has been recognized that the matrix organizational structure has applications far beyond that of project program or product management 12. In a matrix organization, the traditional departments seen in functional structures combine with project teams. There are three main types of organizational structure. Advantages and disadvantages of organizational structures.
Matrix management is the practice of managing individuals with more than one reporting line which forms a matrix structure to leverage functional infrastructure and optimize efficiency often used to describe management across functions, regions, and even other business units classic example. Essentially, the organization used a functional structure. The matrix structure offers organizations an effective system for managing projects. Another kind of divisionalisation is matrix or grid organizational structure. Usually, this necessitates an educational effort so that none feel that their decisionmaking is threatened, and nonmanagement members learn how to function with two managers. Apr 01, 2012 advantages and disadvantages of organizational structures. Functional structure is set up so that each portion of the organization is grouped according to its purpose. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. A matrix structure is an example of hardwiring, because the two bosses of a manager in a matrixed position have the joint responsibility to set his. Difference between matrix and functional structure compare. The matrix structure has three distinctive components 1. This is useful when the functional or product organisational structure fails to meets all the requirements of an organisation. Collaborating outside of a team silo can be difficult to accomplish. The advantages and disadvantages of a matrix organizational structure make it easier to move resources to the most important projects which need to be completed.
Bannerman,19 refers to literature that indicates the following risks. Communication, collaboration and decisionmaking are enhanced. More people become involved in the decision process, which can slow things down. These departments might be further divided, depending on a companys size and. Advantages and disadvantages of matrix modern organization. There are powerful reasons to introduce a matrix organization structure thats why many of the worlds leading organizations have one.
The key advantages and disadvantages of matrix organizational. Communication, collaboration and decisionmaking are enhanced or limited by the organizational structure. Disadvantages of matrix structure manager vs manager. If the it department shares its personnel, the company doesnt have to add employees to complete the projects. The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. This structure has dual authority and this may cause division among the employees and managers. Mar 06, 2020 disadvantages of organizational structure include lopsided management lines, increased bureaucracy, slowed communications, and increased inflexibility.
There can still be a lot of conflict in the workplace. He is critical to conflict management that intrinsically occurs due to dual chain of commands underneath him. Matrix organization is more than a matrix structure. Often individuals in the matrix have more than one line manager, or maybe one solid line line manager and one or more dotted line managers. In a matrix organizational structure, when employees are doing multiple jobs, organizations can become more dependent on them and they get the liberty to perform badly, take days off and even ask for increased pay. Definition a matrix organization is defined as an organization where people have to report to more than one boss. Ford and randolph suggested a number 4 of paradoxes between the advantages and disadvantages of matrix structures. An employee in a matrix structure may be responsible for reporting to his line manager but also reports into a managing director for specific clients. Suppose your company has two projects that require an it professional on the team. However, in this discussion the matrix will only be considered from the viewpoint of its most highly developed application that of project management. When a matrix organizational structure is implemented within the workplace, then there are crossbusiness, crossfunctional units which are.
The advantages and disadvantages of matrix organizational structure dont just happen. Disadvantages of organizational structure include lopsided management lines, increased bureaucracy, slowed communications, and increased inflexibility. Every organization needs a well established organizational structure to reach the organizational goals. Table 4 illustrates the advantages and disadvantages of this type ganesh 20 8. Accountabilities and authority can be less clear and are often shared.
The decision hierarchy is fluid in a matrix structure. The former divides departments within a company by the functions performed, while the. First up is the functional structure, which may be hierarchical and. Apr 23, 2019 these challenges are not about the structure or the strategy, they are about the way people work together in the matrix.
Choosing a matrix is a serious, top level decision requiring commitment to a thorough implementation. Main advantages and disadvantages of the three generic project organizational structures structure advantages disadvantages functional there. Miscommunication may result to dissatisfaction and ineffective management. Oct 26, 2014 hence to fulfill this vision nsa has design a new structure. Typically, an organizational structure provides a framework for reporting relationship between employees. It must be reinforced by matrix systems such as dual control and evaluation systems, by leaders who. But it also involves much complexity and demands much communication so that all organizational managersparticularly the project and the functionalcan effectively and efficiently work together. The organizations strategy determines the organizational structure that will work best for a business at a particular point. Best practices in matrix organizational structures. These challenges are not about the structure or the strategy, they are about the way people work together in the matrix. This structure is a combination of the functional and projectized structures. May 03, 2018 pros and cons of a matrix organizational structure. While this type of organisational structure overcomes the disadvantages of a pure line organisaional structure, it has some major disadvantages.
Besides, it is essential to maintain a balance among these authorities to bring about uniformity in the organizational performance. Matrix organizational structure advantages and disadvantages matrix structure mainly encompasses functional and project structures. If one comes across a horizontal organizational structure, then its natural to assume that there is also a countervailing vertical organizational structure. This paper investigates the characteristics of matrix structures and their relationships with drivers of project success, such as communication, collaboration, and trust between project team members. The functional structure serves as the stem while the project structure lasts as long as the project at hand is running. An analysis of the main project organizational structures. First up is the functional structure, which may be hierarchical and permanent. As a result the solution is not in changing the structure, but in updating the way we work.
Download citation on jan 1, 2015, krzysztof gos and others published the key advantages and disadvantages of matrix organizational structures find. Matrix structure demands a high level of inter personal relations and skill. This is mainly applied in large projects or product development processes, and hiring employees from different disciplines the matrix organization structure is where the. Common organizational structures boundless management. List of the disadvantages of a hierarchical organizational structure 1. The type of organizational structure product, function, or matrix may also have only one of these potential disadvantages. Moreover, due to the absence or departure of one employee due to any. As it acquired each small company, top management first encouraged the owners and general managers.
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