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. It is often used when the firm has to be highly responsive to a rapidly changing external environment. 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. When a project ends, both managers and team members can avoid misconceptions about their job security or searching for new projects as a contractor, as they may simply assume their functional 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. 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. Team … Within the matrix organizational structure, the functional manager might manage their team by department, typically outlined vertically on the matrix. 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. That makes the managerial roles be fluid instead of fixed, making it possible to utilize leadership strengths of managers in better ways. There are some potential downsides that come with the additional complexity and connectedness of matrix working. The matrix structure can allow a company to maintain its departmental structure while projects are in progress. Project management guide on Checkykey.com. Matrix Structure Advantages. All projects the team members may be working on can eventually be completed while their functional roles within the organization are permanent. Advantages of matrix structure are: - 1. There are majorly five main types of formal organizational structures – line, functional, line and staff, project management and matrix. However, when we make a choice we always gain some advantages, and incur some disadvantages. In reality, managers keep their best people within a fenced ring to prevent their experience from benefitting other teams. 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. A project manager could also draw team members from all the organization’s departments for a single project. The matrix organizational structure provides an outline for a project that may demand a more global approach. Second, the authority is flowing horizontally sideways through product 1, product 2 and product 3 managers. 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. 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. 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? 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. Home » Pros and Cons » 15 Matrix Organizational Structure Advantages and Disadvantages. Matrix Organizational Structure: Advantages, Disadvantages & Examples A matrix organizational structure is one of the most complicated reporting structures a company can implement. 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 a matrix structure, the power is delegated on two primary basis, first is the functional are and the second is project to project. You also need workers who are gratified by the work that they do and are passionate about the company. Roles outlined within the matrix organizational structure. 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. Instead of being in charge of a team, these managers and supervisors are in charge of projects. Additionally, the matrix structure allows the managerial roles to be changed depending on the company’s needs and its current projects. Accountabilities and authority can be less clear and are often shared. When a matrix organizational structure is implemented within the workplace, then there are cross-business, cross-functional units which are working together. Crafting Your Career: How to Grow Your Role at Your Current Company, Collaboration between different departments, Combines project and functional management structures, Team members and managers keep their functional roles. 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. That places the future of customers, your talent, and your organization on the line. When a matrix organizational structure is being used, you must have workers who are willing to be multi-dimensional with their work duties. Read on to learn why a company might implement a matrix structure, and the advantages and disadvantages for both company and staff. Advantages of Matrix Organization. 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… You can set professional and personal goals to improve your career. 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. 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. Similarly, the matrix organizational structure may include employees from across different departments to work collaboratively on projects. Here’s how to identify which style works best for you, and why it’s important for your career development. What is a matrix structure and what are the advantages and disadvantages of using one? 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 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. 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. 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. Employees might suffer burnout or overlook or fail to complete tasks or have their quality of work suffer due to time constraints. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. Increased costs if more project managers are created through the an … An organization can be arranged according to a variety of structures, which enable the organization to operate and perform. Departments work closely together and communicate with each other frequently to solve issues. Each of these has their own advantages and drawbacks. 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. Related: Management Styles: Overview and Examples. Miscommunication may result to dissatisfaction and ineffective management. A matrix organizational structure is most commonly used in companies to distribute resources and workers across multiple operations. Matrix Structure Advantages And Disadvantages. 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. 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. Because there are multiple people pulled from multiple departments working on projects in a matrix organizational structure, these corrections must be made immediately. Advantages & disadvantages of matrix structures Advantages . One of the biggest issues faced by the modern workplace is an unequal dissemination of work. If you pull in resources from another department to work on a project, there will be workers who feel like they’re being told they are incompetent. Advantages. Functional and project managers may be required to communicate with each other to clarify what each manager expects from their employees. Additionally, you may consider addressing any employee misconceptions about what the project entails overall, as well as what tasks they may be responsible for. The Key Advantages and Disadvantages of Matrix Organizational Structures. When one team is always busy, and another is not, but both teams earn the same in wages, the people who are always busy are going to experience lower morale. The downside of this approach is that the roles of different people may change according to a change in the project. They might have their own team of direct reports, but those people might be assigned to other tasks at any given time. That saves the company money because they’re able to reduce waste, eliminate duplication, and streamline job functions. There are several advantages of a matrix structure. Instead of being limited to their own silo, workers can be moved from place to place when demands make it necessary. There are several advantages to using the matrix organizational structure. Oftentimes, when implementing a matrix structure, it may be difficult to gauge employee performance when working on a project. Each one provides a small contribution to the customer service experience. They need to love being able to do something different every day. Setting goals can help you gain both short- and long-term achievements. When the matrix structure is used, then you can pull someone with relevant experience from any department. Projects will always continue to come to an end, but project team members and managers may keep their functional roles throughout the project. Consider setting criteria for communication between the different managers and team members. 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 structure may oftentimes be adopted by companies that need to manage daily operations in conjunction with ongoing projects. Matrix structures have advantages and disadvantages. 5 Advantages and Disadvantages of the Matrix Organizational Structure. There must be significant advantages to a matrix structure that outweigh the matrix people management challenges. Another disadvantage of a matrix organizational structure is its tendency toward anarchy. These structures are reported to be good for a productive resource coordination. When information flows vertically as well as horizontally in a matrix structure, it is much efficient. In a perfect world, the matrix organizational structure would always put the best people into the places where they are needed the most. At the end of the day, the worker becomes confused and this reduces their productivity. 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. There are functional managers, who have the “traditional” responsibility of managing their direct reports. 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. When there is more than one supervisor who demands information from a worker, it can become confusing to know who is in charge. This is in part because team members may be essentially performing more than one role, both functionally and the tasks within the project. By allowing different departments to work together, the matrix structure fosters a more open work environment, ultimately making the organization more dynamic. 2. When planning projects within a matrix structure, you might consider methods to increase employee engagement and hold staff accountable for their work. Even though two departments work for the same company, their required metrics could be competitive. It may be slightly difficult for all the employees to fully understand and integrate themselves into this structure. Advantages of a Matrix organization structure. Some examples of these conflicts include issues with decision-making, authority over resources, and control of teams or people. 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