Although the matrix organizational structure attempts to reduce conflict in the workplace, it tends to create plenty of drama when implemented. Drawing from different departments within the organization can allow an interdisciplinary team to view a complex project from a variety of different professional angles and work together to come up with dynamic solutions to different problems. The matrix structure may oftentimes be adopted by companies that need to manage daily operations in conjunction with ongoing projects. Such organisational structures have a lot of costs that are incurred on paperwork, board meeting, and sometimes employees also have to be paid This advantage makes it easier to transition between projects because the learning curve decreases. When people feel like the rug isnât going to get pulled out from underneath them when they finish a project, it is easier for them to invest. Matrix organization is more than a matrix structure. Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations. Several variations of the matrix organizational structure allow for individualization. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. Project managers can act as trainers within an organization. 3. Some workers might experience reporting confusion. 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. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. 7. 2. Companies gain more flexibility with this structure. Efficient lines of communication enhance productivity and allow for quick decision-making. 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. The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. 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. For example, you might require employees to fill out a weekly report template outlining tasks completed toward the project. If there is confusion in the C-Suite regarding how to approach this potential disadvantage, then it can create a massive level of gridlock within the organization. Matrix organizational structure are typical of organizations managing projects, that is the optimum between functional and project organization structure. That means there are fewer boundaries between groups, fewer silos, and more collaboration because the business has more integration. However, even if some projects may not be classified as large scale, they can still be incredibly complex. The decision-making process can be slowed down. Disadvantages of Matrix Organizational Structure. It is easier to get access to resources in the organization. What is active listening, why is it important and how can you improve this critical skill? The freedom to collaborate, rather than being isolated in separate departments, may be the strongest benefit in the list of advantages and disadvantages of matrix organizational structure. All projects the team members may be working on can eventually be completed while their functional roles within the organization are permanent. It encourages more employee development. In addition to the vertical and functional outline, the project manager might manage their teams across different departments, generally outlined horizontally within the matrix. Then the project and functional managers report to the C-Suite in some way. It can result in a heavier workload for some people. Line management conflict can be a disadvantage of a matrix organisation. 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. If a project is going to be a long-term effort, then the matrix organizational structure may provide too much flexibility for a company. If there is more than one boss supervising a workerâs performance, then the details that get moved up the chain-of-command can get jumbled quickly. 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. Youâll have fewer moments of downtime across the organization because other workers can pick up the slack if they arenât doing anything else. There are three common organizational structures, and project managers work in all of them: functional, project, and matrix. 5. 7. There are several advantages to using the matrix organizational structure. Some companies might create a line to a specific executive who then reports to the CEO, the President, or the Board of Directors. That means the project managers can provide leadership support and training by example to the workers who come under their assignment umbrella. You can have a weak, balanced, or strong approach when forming teams. For example, if you work in administration, you might report to the administrative manager, who may then report to an executive director. If someone from customer service has marketing skills that you need, then you can pull them into the work until it gets done â and then send them back to their regular job duties. You might also consider which resources and tools employees might need to complete the project. There can be conflicts or power struggles among different managers overseeing the same team or individuals. That means the actions of the project and functional managers might create problems for their direct reports because employees donât know which side is following company directives. Additionally, you may consider addressing any employee misconceptions about what the project entails overall, as well as what tasks they may be responsible for. These useful active listening examples will help address these questions and more. 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. Additionally, team members might have misconceptions about how they are expected to divide their time between their functional duties and their project responsibilities. 2. There is a cultivation of a diverse set of skills and perspectives. These two or more managerial systems intersect on a grid or matrix. Companies can implement one of three variations of the matrix organizational structure. Businesses weighing the matrix organizational structure pros and cons usually find at least occasional value in using a matrix. Functional and project managers may be required to communicate with each other to clarify what each manager expects from their employees. The traditional chain-of-command isnât always well-suited to those purposes. This disadvantage gets missed far too often, unfortunately. 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. A formal chain of command for both functional and divisional relationships is provided by the _____ approach to structure. Employees in the matrix organizational structure are typically accountable to more than one direct supervisor. It can even cause some organizations to keep talent that they donât use consistently so that they donât lose someone to the competition. It exposes them to multiple project types instead of confining them to specific departments or team silos. This structure increases the organizational complexity of the company. This sometimes can cause conflict if they are asked to carry out tasks from both areas. Most large companies use the matrix organizational structure because of the efficiencies that it produces. If there isnât enough work to keep everyone busy, then money can get wasted quickly. The goal of this method is to have each person share their experiences and expertise freely so that everyone benefits from their perspective. 2. 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. 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. Departments work closely together and communicate with each other frequently to solve issues. Related: Using Performance Management in the Workplace. 4. It is an advantage that can improve the chains of command while reducing the costs of operating an independent training unit within the company. Disadvantages:- The matrix organisation structure definitely causes an increase in the operation costs. Consider setting criteria for communication between the different managers and team members. Since labor is the primary expense for most companies, using this structure can cause the payroll to balloon rapidly. 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. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. ii. 8. Related: Management Styles: Overview and Examples. Outlined in a grid fashion, the functional managers and project managers are role-specific and are included within the matrix. 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. One benefit of the matrix structure is that it allows cross-collaboration between staff and departments that may not always have opportunities to work together. Within the matrix organizational structure, the functional manager might manage their team by department, typically outlined vertically on the matrix. The information on this site is provided as a courtesy. By allowing different departments to work together, the matrix structure fosters a more open work environment, ultimately making the organization more dynamic. 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 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. That means communication lines must stay open naturally since obstruction can impact the efficiency of the system. This disadvantage of the matrix organizational structure can also make some workers question who is in charge. Instead of pulling from individualized resource pools, the matrix organizational structure lets a company use the entire business to find the talent it needs. When you have multiple managers in place for individual workers, then there might not be any determination on that personâs professional development. Then the disadvantages of cost and complexity might be enough to push some businesses away from this foundational choice. Disrupting that process can create enough discomfort where individual productivity goes down. Employees might suffer burnout or overlook or fail to complete tasks or have their quality of work suffer due to time constraints. Discord in the management ranks means there is less supervision that happens during a project. They do still have their Line Manager from their Functional Department. Most companies institute two separate chains of command to manage their needs with this approach, which means each supervisor must be on the same page with everyone else to ensure productivity levels remain maximized. The traditional hierarchy model was used for centuries because it creates a simple foundation for reporting. A project manager can act as a trainer internally for anyone who wants to become a functional manager one day. There is a dual authority in a matrix organization. confusion between managers who are involved with projects that are outlined by the matrix. Disadvantages. 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. Both managers must be on the same page for it to be an effective structure. 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. Each employee within the human resources department, for example, might report to the human resources department manager. The matrix structure has the following advantages: i. A conflict may arise between the project manager and the functional manager regarding the authority and power. The matrix structure can offer employees the opportunity to strengthen their interpersonal skills, communication skills and new skill sets due to the nature of utilizing more than one manager. This option is also an issue when the skills of a specific employee are critical to the mission or vision of the organization for a specific function. Although some exceptions can happen, this work typically leads to a stronger and better organization. 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. Some examples of these conflicts include issues with decision-making, authority over resources, and control of teams or people. Each person under that basic system has one boss to who they report directly. When team roles are outlined using a matrix structure, employees may often be required to communicate on a consistent basis with both managers, detailing their overall progress and to clarify any misconceptions of what work they are responsible for. The following are a few disadvantages of a matrix organization structure: 1. 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. 15 Hierarchical Organizational Structure Advantages and Disadvantages. This structure requires employees to work on their job duties and a project assignment. Although having your best and brightest on each project is an important outcome, people can only do so much in the time theyâre allotted for work each day. It can be cheaper to implement the matrix organizational structure. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of ⦠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. If a worker receives conflicting messages from their bosses, then the end result is a reduction of quality and quantity in their work. The departmental walls that create competition in other companies disappear, making it easier for workers to move freely between different units. Thatâs why most companies require employee reports to be given to all relevant management personnel simultaneously. That means the entirety of their professional skillset begins to experience growth. Although this advantage creates the risk of having one person juggling multiple projects simultaneously, it still uses the average workerâs skills more efficiently. It creates potential conflicts of loyalty and competition between functional and divisional goals. 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 organizational structure is a mix of two other organizational structures, the project system, and the functional system. The matrix organizational structure improves internal communication. 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. For instance, the marketing and finance department may be consulted for working on the budget and any strategies for a new ad campaign. 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. The downside of this approach is that the roles of different people may change according to a change in the project. Brands like Texas Instruments and Caterpillar require its supervisors to report along project and functional lines to ensure productivity levels remain high. When you can achieve this outcome, the work gets better with less labor, and that means the cost savings can get passed along to consumers to create a competitive advantage. The matrix organizational structure provides an outline for a project that may demand a more global approach. 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. Teams remain loyal within the matrix organizational structure because it offers a more stable work environment. Aug 24, 2018 Sep 10, 2018 by Brandon Gaille. It promotes development of managers through increased involvement in ⦠Functional managers oversee entire departments of an organization. The Matrix Organization Structure can deliver this, provided people have the skills to make the matrix work. Setting goals can help you gain both short- and long-term achievements. Matrix organizational structure: advantages and disadvantages READ MORE on www.projectsmart.co.uk 5 Advantages Or Disadvantages Of A Martix Organisation the advantages and disadvantages described above: Project Matrix. The matrix organizational structure encourages employees to continue their career development process. 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 overlaps can lead to turf battles and difficulty in determining accountability. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. 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. It may be slightly difficult for all the employees to fully understand and integrate themselves into this structure. Sharing the expertise of this individual may reduce their overall effectiveness and lead to a downgrade of their functionality. Advantages of matrix structure are: - 1. 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. The matrix organizational structure can cause management directives to conflict. A project manager could also draw team members from all the organization’s departments for a single project. Matrix organisation or grid organisation is a hybrid structure combining two complementary structures functional departmentation with pure project structure. Disadvantages of Matrix Organization. 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. 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. Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). Matrix structures can help provide both flexibility and balanced decision making, but at the price of complexity. You can ask anyone from any department a question about a project. 3. 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. It creates a structured environment where the developed best practices can receive a daily review. This standardization can create some issues with job security if artificial intelligence can take over repetitive tasks. That means the traditional hierarchy disappears in the chain-of-command. Similarly, the matrix organizational structure may include employees from across different departments to work collaboratively on projects. This could create a psychological stress among these individuals as an element of uncertainty would always exist. Both functional and project manager roles can be outlined in the matrix organizational structure. That means the quality and quantity of the work that teams produce gets better over time when using this structure. This disadvantage can lead to lower levels of job satisfaction, higher employee churn, and issues with burnout. Read on to learn what is a matrix structure diagram, matrix structure diagram examples, and the advantages and disadvantages for both company and staff. This type of structure can have both advantages and disadvantages within the workplace. Do you know the three types of learning styles? The matrix organizational structure allows for more collaboration between departments rather than searching for solutions from the top level and downward. When using the matrix organizational structure, the goal is to have two or more managerial sets focus on a specific area of the business. In a matrix structure, the power is delegated on two primary basis, first is the functional are and the second is project to project. It allows for consistent methods to get used across the organization. Meetings and bureaucracy can rise as the amount of coordination and communication increases. Employees donât need to worry about the whims of a single individual impacting their livelihood, especially if they are employed in a right-to-work environment. 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. The aerospace industry in the United States was the first to implement this approach to professional reporting in the 1950s. Let's take a look at the advantages and disadvantages of each so you know what you're up against when you join a new structure. An employee may find ⦠Although the spirit of cooperation is the desired result, the competitive nature of each person and team can come into play. Some employees might play managers against each other. Additionally, such a project may necessitate the skills and expertise of different employees in other departments to find dynamic solutions to complex problems. It occurs because team members often get tasked with additional responsibilities because of their identified expertise that goes beyond their regular job duties. This issue with a matrix organizational structure can lead to a loss of clarity on who becomes responsible for each employeeâs performance evaluation. Employees may be confused about their role and responsibility if the priorities are not defined clearly, e⦠Less downtime occurs for internal resources. The advantages may be beneficial if the current processes are falling short or there is an expectation of rapid growth soon. Consider having managers outline clear expectations of what each of their team members will be responsible for. Additionally, the matrix structure allows the managerial roles to be changed depending on the company’s needs and its current projects. It isnât 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. 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. Workers are usually their time more efficiently, and no one must wait for their next assignment since they can return to their functional tasks immediately. In other cases, the project manager may have as much superiority as (or sometimes more than) a traditional functional manager. The matrix structure is a type of organizational structure in which individuals are ⦠Oftentimes, when implementing a matrix structure, it may be difficult to gauge employee performance when working on a project. The structure can result in a lack of clarity. The matrix organizational structure helps a company manage large, complex projects. There are several other key advantages as well: Perhaps the biggest advantage of a matrix structure is that is brings together highly skilled team members from different departments, allowing the organization to capitalize on the resources it already has rather than seeking expertise and recruiting project team members from outside of the organization. Self-contained unit structure is a term used for: ... All of the following are the major disadvantages of the matrix structure EXCEPT: enlarged tasks for employees. Read more: The Essential Functions of Management. If the managers can get on the same page to understand what is happening, then the removal of a potentially problematic team member supports higher productivity levels. The ease of communication that exists with this structure almost always leads to new sharing and collaboration opportunities. 6. It means you can always select the best person for a job internally than trying to hire someone new in an unpredictable hiring climate. Everyone gains valuable experiences by working outside of their traditional boundaries. By working in a matrix organisation the resources are only seconded to the project for limited amount of time. That means the quality of the work naturally improves while the time spent on each project can do down. Although the matrix organizational structure improves communication within a company, the dual-reporting structure can also create some confusion for some workers. Matrix Structure. Overloading the most talented workers consistently is a recipe that usually leads to them searching for a new place to work. Managerial roles may not be clearly defined. 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