matrix organizational structure advantages and disadvantages

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. The aforementioned advantages of matrix management would not be possible with an improperly designed and implemented structure due to the unclear scope and limitations of the structural components. In other cases, the project manager may have as much superiority as (or sometimes more than) a traditional functional manager. Its objective is to carry out operations smoothly and efficiently. combination of two or more types of organizational structures 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. However, when we make a choice we always gain some advantages, and incur some disadvantages. 5 Advantages and Disadvantages of the Matrix Organizational Structure Using the matrix organizational structure. For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive … Resources can be used efficiently, since experts and equipment can be shared across projects. Here are some of the advantages and disadvantages of having a matrix organizational structure in the workplace. Divisional structures group various organizational functions into … As more units are involved the flow of information is also affected to a greater degree. 3. Our tools and programs have been developed for diverse and demanding audiences. Find out how to grow your career within your current company by creating new opportunities internally. A disadvantage is that employees are responsible to their project team as well as to their functional areas. Accountabilities and authority can be less clear and are often shared. Consider having managers outline clear expectations of what each of their team members will be responsible for. Take our free Introduction to the Matrix online learning program. For example, a company could have human resources, marketing, operational and finance departments. Advantages: The matrix structure has the following advantages: i. The matrix structure may oftentimes be adopted by companies that need to manage daily operations in conjunction with ongoing projects. As a result the solution is not in changing the structure, but in updating the way we work. It promotes development of managers through increased involvement in decision­-making. For example, you might require employees to fill out a weekly report template outlining tasks completed toward the project. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. Setting goals can help you gain both short- and long-term achievements. This structure has some advantages: 1. There are powerful reasons to introduce a matrix organization structure – that’s why many of the world’s leading organizations have one. The matrix structure is for this reason advantageous in stimulating organizational performance with minimal drawbacks equally discussed thereafter. However, even if some projects may not be classified as large scale, they can still be incredibly complex. This can result in reduced employee effectiveness and increased ambiguity as employees try to decide which tasks are most important. Our jobs as leaders is to help deliver the advantages and prevent the potential disadvantages. The 6 key advantages and disadvantages of a matrix organization. 6.17). 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. For instance, the project manager might draw their team members from the administrative, human resources and marketing teams. And 6 key disadvantages of the matrix. Disadvantages of matrix structure Manager vs Manager iv. There are some potential downsides that come with the additional complexity and connectedness of matrix working. 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. This video outlines the 6 key reasons why organizations introduce a matrix and the importance of communicating these reasons clearly. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . When information flows vertically as well as horizontally in a matrix structure, it is much efficient. Functional and project managers may be required to communicate with each other to clarify what each manager expects from their employees. Following are some of the pros of adopting such an organizational structure: Lecture Objective • Types of organizational structure that impacts project management • Pure Project Organization, Functional Project Organization and Matrix Project Organization • Advantages and disadvantages of those vary organizational types • Project Management Office (PMO) • Impact of organizational culture towards a project It also introduces some potential downsides of the matrix for the way we work together. The matrix structure also allows for better interdepartmental communication and collaboration. Matrix structure mainly encompasses functional and project structures. Functional managers oversee entire departments of an organization. In addition to the vertical and functional outline, the project manager might manage their teams across different departments, generally outlined horizontally within the matrix. Each division is accountable in isolation under this organizational structure. 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. One advantage of the matrix organizational structure is that people across different functional areas have a better understanding of their coworkers in other areas. These challenges are not about the structure or the strategy, they are about the way people work together in the matrix. Our audiences span all levels, from CEOs to operational teams around the world. 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. 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. The matrix structure can allow a company to maintain its departmental structure while projects are in progress. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. Matrix organizational structures propose two management structures in single organization. A project manager could also draw team members from all the organization’s departments for a single project. Each employee within the human resources department, for example, might report to the human resources department manager. Read on to learn why a company might implement a matrix structure, and the advantages and disadvantages for both company and staff. Accountabilities and authority can be less clear and are often shared. Indeed is not a career or legal advisor and does not guarantee job interviews or offers. 2. If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. However, when we make a choice we always gain some advantages, and incur some disadvantages. Project manager works like a project coordinator or project expeditor. 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. 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 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. However, a matrix organizational structure has both advantages and disadvantages. A line organisation has only direct, vertical relationships between different levels in the firm. 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. Matrix organisation has been developed to meet the need of large and complex organisation which requires a structure more flexible and technically oriented rather than the functional structures. These matrix organizational structure advantages and disadvantages must get taken into consideration at the local level. 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. 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. List of the Advantages of the Matrix Organizational Structure 1. You might also consider which resources and tools employees might need to complete the project. Advantages of Matrix Organizational Structure The matrix structure is widely used in the organizations which are large and diversify into different product lines. An organization can be arranged according to a variety of structures, which enable the organization to operate and perform. This way of working is the norm in complex organizations, 6 key advantages of the matrix organization. 5. Project coordinator can take Low bit decision on the allocation of the resources 4. Monitoring is difficult and controlling of managers as well as employees because of the complex infrastructure. Managerial roles may not be clearly defined. Projects will always continue to come to an end, but project team members and managers may keep their functional roles throughout the project. Project expeditor works only like communicator point between the customer and team. There are only line… 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. Measuring employee performance might become difficult. To improve cooperation and communication across the functional and geographic silos. However, a matrix organization structure also introduces a higher level of internal complexity and some additional people management challenges, so there must be significant advantages to a matrix organization structure that outweigh the matrix people management challenges. Here are some common challenges. The functional structure serves as the stem while the project structure lasts as long as the project at hand is running. 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. You can set professional and personal goals to improve your career. 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. A matrix organisation is a two dimensional structure, a combination of pure project structure and the traditional functional departments (Fig. 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 dimensio… The matrix organization is an organizational structure in which the work is divided in projects. In the absence of clear communication, the response to reorganization is often ‘I will keep my head down and it will go away in six months.’. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. The matrix organizational structure provides an outline for a project that may demand a more global approach. Do you know the three types of learning styles? A matrix structure is, strictly speaking, where we have multiple bosses – more than one formal reporting line, whether solid or dotted. We can see increases in central control as leaders try to re-establish control over a more complex environment. There are three common organizational structures, and project managers work in all of them: functional, project, and matrix. More people become involved in the decision process, which can slow things down. There are several advantages of a matrix structure. Consider setting criteria for communication between the different managers and team members. Within the matrix organizational structure, the functional manager might manage their team by department, typically outlined vertically on the matrix. The main advantages of this structure are efficiency, strong project focus, easier post-project transition and flexible use of organizational resources. Moreover, new employee hiring is not done, instead existing employees are given extra jobs. 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. 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. Additionally, the matrix structure allows the managerial roles to be changed depending on the company’s needs and its current projects. In the absence of clear goals people often assume that the matrix is the latest management fad or the brainchild of some external consultants. Under this structure, direct contact replaces bureaucracy. 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. 2. When planning projects within a matrix structure, you might consider methods to increase employee engagement and hold staff accountable for their work. When a matrix organizational structure is implemented, then everyone stays busier on any given day. Project manager reports to functional manager It is often used when the firm has to be highly responsive to a rapidly changing external environment. The decision-making process can be slowed down. There are several advantages to using the matrix organizational structure. There is the possibility of more resource conflict as people need to engage outside their silos to get things done. As more managers are employed the matrix organization is more expensive than the traditional one. If individual department heads can accomplish everything the company needs using the resources in their own silos, there's no need for a matrix. The advantages and disadvantages of matrix organizational structure don't just happen: The company's managers and their decisions influence whether the matrix's pros or cons win the day. iii. Team members may need to perform their functional role within the company and perform separate tasks for the project manager. ii. In a matrix organization, instead of choosing between lining up staff along functional, geographic or product lines, management has both. Both functional and project manager roles can be outlined in the matrix organizational structure. However, the term matrix is often used for anywhere where we are working ‘horizontally’ across the traditional ‘vertical’ silos of function, geography or other organizational units, such as working with external partners, or multi-functional and virtual teams. In some cases, for example, a project manager might play more of a coordinating role. 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. All projects the team members may be working on can eventually be completed while their functional roles within the organization are permanent. For example, if you work in administration, you might report to the administrative manager, who may then report to an executive director. As an example, the structure could restrict the flow of information and hamper decision-making due to anarchy. The matrix organizational structure allows for more collaboration between departments rather than searching for solutions from the top level and downward. 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. Ambiguity increases, with competing goals and higher levels of change and flexibility. By allowing different departments to work together, the matrix structure fosters a more open work environment, ultimately making the organization more dynamic. Additionally, such a project may necessitate the skills and expertise of different employees in other departments to find dynamic solutions to complex problems. Similarly, the matrix organizational structure may include employees from across different departments to work collaboratively on projects. 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. Divisional Structure. Each of these has their own advantages and drawbacks. 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. It isn’t 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. These two or more managerial systems intersect on a grid or matrix. Related: Management Styles: Overview and Examples. This can create some conflict. Here’s how to identify which style works best for you, and why it’s important for your career development. 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. 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. Download Citation | On Jan 1, 2015, Krzysztof Goś published The Key Advantages and Disadvantages of Matrix Organizational Structures | Find, read and cite all the research you need on ResearchGate To build broader people capabilities – as businesses become more integrated they need to develop people who can think beyond their own functions or locations. For instance, the marketing and finance department may be consulted for working on the budget and any strategies for a new ad campaign. Meetings and bureaucracy can rise as the amount of coordination and communication increases. To meet the needs of global or regional customers who want a consistent international agreement and point of contact. We can tailor content closely to your specific needs or deliver off the shelf bite sized modules based on our existing IP and 25 years of training experience. Oftentimes, when implementing a matrix structure, it may be difficult to gauge employee performance when working on a project. Explore an interactive graphic of our matrix management learning path showing how we train leaders to overcame these potential disadvantages.See more of our insights including more blogs, free webinars and white papers on matrix management. There is less overall downtime within the workplace. Disadvantages of the divisional approach are: - 1. Today we will learn a little more about the functional organizational structure. 5 Advantages and Disadvantages of the Matrix Organizational Structure. 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. We are deep content experts in remote & virtual teams, matrix management and agile & digital leadership. Firstly, it uses the resources of the organization efficiently and to the full, because one person is doing multiple jobs. Related: Using Performance Management in the Workplace. 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. Roles outlined within the matrix organizational structure. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. Additionally, team members may also participate in future projects. 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. 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. For more about how we deliver our keynotes, workshops, live web seminars and online learning. 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. Products and pr… The information on this site is provided as a courtesy. Overview of Matrix Structure Diagram The Matrix Structure Diagram is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. There are some potential downsides that come with the additional complexity and connectedness of matrix working. 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