Answer to Question #283982 in Management for Mau

Question

What are matrix organization ? Explain its advantages and disadvantages. How

it is different from project structure ?

Answer 1

A matrix organizational structure allows multiple departments to easily communicate and collaborate on a project. Because employees answer to multiple managers as opposed to just the functional manager, issues are resolved more quickly and company-wide interaction is increased.

Advantages of Matrix

Increased communication efficiency

A matrix organizational structure allows multiple departments to easily communicate and collaborate on a project. Because employees answer to multiple managers as opposed to just the functional manager, issues are resolved more quickly and company-wide interaction is increased.

Improved employee motivation

In a matrix organizational structure, employees have much more autonomy and input in projects. This type of structure encourages employee contribution and places a higher value on each employee’s point of view.

Increased teamwork

In a matrix organization, employees work across multiple projects and with various departments within the company. This increases employee interaction and promotes a better sense of teamwork.

Maximizes resource usage

This type of structure allows resources to be maximized because of how equipment and employees are shared across projects. A matrix structure also allows project managers to work within their own areas of expertise, rather than being pulled across multiple projects.

Increased employee professional development

A matrix structure allows employees to work across a wide variety of projects and often requires them to utilize and/or learn different skills.

Disadvantages of Matrix

Potential conflict between managers and projects

Because this matrix requires employees to answer to two or more managers and work on multiple projects, it could cause workers to become conflicted between managers and projects. Also, because there are multiple managers in charge, there is the potential for inconsistent managing directives among teams.

Authority confusion

Since matrix organizational structures employ two or more managers, there may be potential confusion around the exact responsibilities of each manager and which manager has final say should there be a difference of opinion among them.

Reduced employee effectiveness

Sometimes, in a matrix organizational structure, employees are assigned to multiple tasks across a number of projects. This can result in reduced employee effectiveness and increased ambiguity as employees try to decide which tasks are most important.