Read more: The Essential Functions of Management. Both issues create a conflict in loyalty that can lead to issues of worker retention over time. Within a matrix organizational structure, there are usually two separate chains of command that are utilized to move communication from the C-Suite to the entry-level workers. Expert Answer Matrix structure is a kind of organizational structure where one or more forms are combined and the best from each of them is taken. 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. With a matrix organizational structure, these workers can see how different areas of the company function, allowing them to see why some jobs are completed in a specific way. Do you know the three types of learning styles? Advantages & disadvantages of matrix structures Advantages . Additionally, such a project may necessitate the skills and expertise of different employees in other departments to find dynamic solutions to complex problems. This sometimes can cause conflict if they are asked to carry out tasks from both areas. 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. Advantages of a Matrix organization structure. Additionally, you may consider addressing any employee misconceptions about what the project entails overall, as well as what tasks they may be responsible for. There are majorly five main types of formal organizational structures – line, functional, line and staff, project management and matrix. This further eliminates the silo concept from the workplace as information transparency is the only way to ensure every manager knows what is going one with specific workers. Working outside of a traditional or hierarchal structure can benefit employees by helping them develop new skill sets and gain valuable experience from working with different departments. If a car manufacturer wants to design, produce and market a new model, the process involves most parts of the organisation and a flexible/adaptable system is needed to achieve the objectives. 1. Since there are not departments for the resources based on their specialties, if there won’t be a new project, resources are released at the end of the project. Managerial roles may not be clearly defined. 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. There is less confusion about work assignments. Related: Using Performance Management in the Workplace. The matrix organizational structure can offer flexible ways for businesses to work on projects, however, it may be difficult to initially implement due to the multiple aspects within a project. With a matrix organizational structure, one worker can be in charge of all the customer service experience needs across all the departments because their experience can be pulled by all three departments. Find out how to grow your career within your current company by creating new opportunities internally. The information on this site is provided as a courtesy. It is often used when the firm has to be highly responsive to a rapidly changing external environment. 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. Another disadvantage of a matrix organizational structure is its tendency toward anarchy. Project management guide on Checkykey.com. 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. The matrix structure also allows for better interdepartmental communication and collaboration. Advantages of matrix structure are: - 1. Even though there are two types of managers in a matrix organizational structure, with two chains of command, the balance of power between these two “groups” is not usually defined. There is a dual … Employees might suffer burnout or overlook or fail to complete tasks or have their quality of work suffer due to time constraints. When the matrix structure is used, then you can pull someone with relevant experience from any department. That means the people who are pulled to work on other projects have fewer skills and experience, which eventually degrades the quality of the products or services produced. Although the matrix organizational structure attempts to reduce conflict in the workplace, it tends to create plenty of drama when implemented. When a matrix organizational structure is implemented, then everyone stays busier on any given day. When a project is completed, the pulled workers can be put back onto their teams with little difficulty. In a matrix structure, the importance of entry-level and middle management positions is greatly reduced. There are several advantages to using the matrix organizational structure. That saves the company money because they’re able to reduce waste, eliminate duplication, and streamline job functions. When that occurs, the outcome is almost always an inconsistent message from those who are in charge. A matrix organizational structure is most commonly used in companies to distribute resources and workers across multiple operations. Measuring employee performance might become difficult. The lower you are on the chain of command, then the less you pay attention to the 5-year plan. 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 other cases, the project manager may have as much superiority as (or sometimes more than) a traditional functional manager. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager. Each employee within the human resources department, for example, might report to the human resources department manager. Second, the authority is flowing horizontally sideways through product 1, product 2 and product 3 managers. There can be conflicts or power struggles among different managers overseeing the same team or individuals. They might have their own team of direct reports, but those people might be assigned to other tasks at any given time. Matrix organizational structure is really beneficial to the employees. Disadvantages of matrix structure Manager vs Manager The matrix structure combines the project management structure with the functional management structure to increase efficiency, adapt to changing markets and respond more quickly to market demand. It creates a company-based approach instead of a team-based approach. Each one provides a small contribution to the customer service experience. There must be significant advantages to a matrix structure that outweigh the matrix people management challenges. The matrix organizational structure provides an outline for a project that may demand a more global approach. One of the most significant advantages of the matrix organizational structure is its ability to share highly-skilled resources. That is why clear communication is necessary within this structure on a consistent basis. Additionally, weekly or daily communication with employees can be necessary to clarify any questions or misunderstandings, as well as give actionable feedback to employees as they do their work. In some cases, for example, a project manager might play more of a coordinating role. These workers get their job done, every day, and that’s it. This type of organization has a complex structure. 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. By working in a matrix organisation the resources are only seconded to the project for limited amount of time. Accountabilities and authority can be less clear and are often shared. 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. The Key Advantages and Disadvantages of Matrix Organizational Structures. With a matrix organizational structure, there is a “dotted line” added to the chain of command for every additional supervisor that might be assigned to a project being worked on. The idea is based on the typical matrix structure-double subordination, balance of authority, and both vertical and horizontal orientation. This flow of power in two ways is the reason why the organizational structure is actually called the ‘matrix’ structure. One of the biggest issues faced by the modern workplace is an unequal dissemination of work. When information flows vertically as well as horizontally in a matrix structure, it is much efficient. Workers can feel torn between their “regular” duties and the jobs assigned to them by the matrix. A matrix organizational structureis a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. You can work on lots of different things, sometimes in parallel—although this point can be argued as a disadvantage as well. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. Project management guide on Checkykey.com. By allowing different departments to work together, the matrix structure fosters a more open work environment, ultimately making the organization more dynamic. Disadvantages of Matrix Organization. Because of the nature of the matrix involving more than one manager, decisions that may be required to pass through both managers can sometimes take longer to process than a traditional structure. Departments work closely together and communicate with each other frequently to solve issues. For example, you might require employees to fill out a weekly report template outlining tasks completed toward the project. Although multitasking does bring with it certain disadvantages, you won’t have workers twiddling their thumbs is there is a slow day of work with their primary job responsibilities. However, when we make a choice we always gain some advantages, and incur some disadvantages. In addition to the vertical and functional outline, the project manager might manage their teams across different departments, generally outlined horizontally within the matrix. Functional managers oversee entire departments of an organization. The matrix structure may oftentimes be adopted by companies that need to manage daily operations in conjunction with ongoing projects. There are some potential downsides that come with the additional complexity and connectedness of matrix working. At the end of the day, you’re asking people to do more for the same wage with this structure, so if there are no self-gratified workers present, there can be a lot of rebellion. Additionally, team members may also participate in future projects. No one is perfect. The advantages of a matrix structure include: ... Whilst the disadvantages of a matrix structure include: A conflict of loyalty between line managers and project managers over the allocation of resources. The matrix structure is for this reason advantageous in stimulating organizational performance with minimal drawbacks equally discussed thereafter. Matrix structures have advantages and disadvantages. From the hierarchal organizational structure to flatter, less bureaucratic structures and the team-oriented matrix, all organizational structures have advantages and disadvantages in key areas. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. Communication, collaboration and decision-making are enhanced or limited by the organizational structure. They need to love being able to do something different every day. For example, if you work in administration, you might report to the administrative manager, who may then report to an executive director. Imagine that you have three departments in an organization. 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. Teams and individuals can be very responsive. Indeed is not a career or legal advisor and does not guarantee job interviews or offers. 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 advantages and disadvantages of a matrix organizational structure make it easier to move resources to the most important projects which need to be completed. Because there are multiple people pulled from multiple departments working on projects in a matrix organizational structure, these corrections must be made immediately. All projects the team members may be working on can eventually be completed while their functional roles within the organization are permanent. For instance, the project manager might draw their team members from the administrative, human resources and marketing teams. Matrix Structure Advantages. Instead of being in charge of a team, these managers and supervisors are in charge of projects. One issue that many companies face is a lack of awareness of the overall vision and mission of the organization at the entry-level positions of the company. When org-chart experts list the advantages and disadvantages of matrix organizational structure, the effective use of employees is a big advantage. Advantages. Conversely, the matrix structure may sometimes be difficult in achieving total structure in an environment where managers hold equal superiority over their shared team members. In a standard chain of command, a worker would have a direct supervisor to whom they would report. The most important disadvantage of this organizational structure type there is no “home” for the project resources once the project is finished. The downside of this approach is that the roles of different people may change according to a change in the project. And 6 key disadvantages of the matrix. That places the future of customers, your talent, and your organization on the line. It is easier to get access to resources in the organization. When you have more options available for assignments, then the workload becomes more consistent. They gain the advantage of having dual support. Everyone needs to work the same way to prevent communication issues. Even though the matrix structure has some disadvantages, matrix organizations provide clear accountability within a specific business function and allow more efficient allocation of specialized skills across the entire business. There is a lot of flexibility within the matrix because people can be placed into any position, at any time, to focus on their experiences and strengths. That reduction of authority means only senior managers are seen as “true leaders” within the company, yet it is the lower levels of management which a=re asked to handle the day-to-day issues which come up. This could create a psychological stress among these individuals as an element of uncertainty would always exist. It may be slightly difficult for all the employees to fully understand and integrate themselves into this structure. In this article, you will learn what the matrix organizational structure is, what roles it includes and the top advantages and disadvantages of using this template for organizing a project. The most complete project management glossary for professional project managers. Projects will always continue to come to an end, but project team members and managers may keep their functional roles throughout the project. If the IT department shares its personnel, the company doesn't have to add employees to complete the projects. One of the advantages of implementing the matrix organizational structure in a business is that it can lead to an efficient exchange of information. Consider having managers outline clear expectations of what each of their team members will be responsible for. 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Because of its complexity, and the need for employees to report to two bosses, it can lead to: 1. confusion regarding roles, responsibilities and priorities 2. divided loyalties between project teams 3. blurred lines of accountability 4. difficulties in coordinating tasks or functions 5. power struggle between the project manager and the functional manager 6… The decision-making process can be slowed down. When there is more than one supervisor who demands information from a worker, it can become confusing to know who is in charge. Within the matrix organizational structure, the functional manager might manage their team by department, typically outlined vertically on the matrix. ... Main advantages and disadvantages of the three generic project organizational structures Structure Advantages Disadvantages Functional There is no need to negotiate and compete with other areas for resources. More importantly, it may be difficult to know who has the final say on decisions which need to be made. Through quality assurance protocols, there may be corrections that need to be made in the work completed. Oftentimes, when implementing a matrix structure, it may be difficult to gauge employee performance when working on a project. For instance, the marketing and finance department may be consulted for working on the budget and any strategies for a new ad campaign. 2. The vertical flow provides information to follow from project to project while the horizontal flow provides information to go from functional units to functional units. 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. That makes the managerial roles be fluid instead of fixed, making it possible to utilize leadership strengths of managers in better ways. The Matrix Structure Diagram is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. As we have seen in other posts, a matrix organization structure does introduce (or recognize) a higher level of complexity and some distinct people management challenges, so why do organizations do it? This structure makes it easier to share resources in different divisions. Within a matrix, an individual may have multiple supervisors because their work responsibilities are no longer linear. You might also consider which resources and tools employees might need to complete the project. Outlined in a grid fashion, the functional managers and project managers are role-specific and are included within the matrix. In a perfect world, the matrix organizational structure would always put the best people into the places where they are needed the most. Home » Pros and Cons » 15 Matrix Organizational Structure Advantages and Disadvantages. This increase in complexity can result in a higher manager-to-worker ratio, which can in turn increase costs or lead to conflicting employee loyalties. This person would manage multiple projects for several different supervisors, even though none of them may be their direct supervisor. Ultimately, with careful planning, clear expectations and open, effective communication, the matrix organizational structure can be an advantageous method of organizing multiple roles and departments when undertaking a large-scale project. Then there are project managers, who have the responsibility of completing specific assignments as they come in. 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. The most complete project management glossary for professional project managers. Matrix structure mainly encompasses functional and project structures. 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. When a worker is pulled from one department to the other for a project, they might be asked to complete work that competes with the objectives present in their own job. Matrix Organisational Structure Advantages And Disadvantages. That means you’re working on multiple projects at once instead of one project at a time. Advantages of Matrix Organization. Here are some of the advantages and disadvantages of having a matrix organizational structure in the workplace. Setting goals can help you gain both short- and long-term achievements. Another issue is when team members’ roles aren’t clearly defined in the project or the division of responsibilities between employees’ functional roles and project roles isn’t clear. 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