As a result, a dual-reporting organization structure is formed where each member of the matrix organization reports to the manager of the cross-functional team as well as the manager of the department that sourced the team member. The matrix organization is an adhocracy design that has four major disadvantages:
Advantages of Matrix Organization Structure Better coordination and control The main responsibility of the project manager is to maintain coordination among interrelated factors of a particular project.
He has to communicate both with the horizontal and vertical authorities so that the project work can be run smoothly. Similarly, functional managers are responsible for providing technical and administrative guidance to projects.
This leads to a better and more effective control over regular operation. Adaptable to dynamic environment This structure is adaptable to the frequent changing and uncertain environment of the business world.
The project manager have functional in dependency and they can get quick feedback with information related with projects. Thus, decision can be made in time, which contributes to reducing the adverse effects of any sudden change in the environment.
Maximum use of resources In matrix structures, many projects are handled at a time. As such, there is more possibility of maximum use of available resources including manpower.
The specialization staff can experts of a completed project can be used to other projects. It minimizes extra cost of hiring new personnel.
Similarly, surplus material, plant, equipment and other resources of a completed project can be transferred to another project.
Thus, available resources can be used within the organization and the wastage of resources can be minimized. Participative management Matrix structure emphasizes on participative management. Here, people are working together on a project as a team.
High level management provides motivational atmosphere within the organization. It takes suggestions, information and ideas from functional and project experts before taking the commitment of members to complete the given work within the defined time and standards.
Sufficient time to top management This structure encourages delegation of authority to project managers. They are responsible for regular operation of the project.
They have the authority to take decisions related to the day to day operation of projects. This provides sufficient time to the top management to make strategic planning and policies rather than operational activities. The initiation and creativity of the top level management are necessary for further development of organizational activities.
Excellence and inter disciplinary specialization Since specialists and experts are involved in many inter disciplinary areas, there is possibility of quality performance and output. Similarly, specialists from any inter disciplinary and interact with each other to get better opportunity to expand technical excellence into many inter disciplinary areas and also in many activities.
Again, this contributes in developing the overall working efficiency of the organization. Development of teamwork Here, many members, both from the project and functional areas, involve in achieving common objectives. They interact with each other and develop mutual and close relation with each other.
Besides, both project and functional managers play the role of coordination among them. This working environment develops a feeling of team spirit among the members.
This contributes to develop the overall working efficiency of the organization. Disadvantages of Matrix Organization Structure Violation of unity of command In matrix structures, subordinates have to follow instruction from more than one superior.
Generally, they receive orders from functional managers as well as from project managers. In some cases, subordinates may receive instructions from both the superiors at a time, which confuses the subordinates.
To avoid the problems, frequent and comprehensive communication among project and functional managers is necessary. Costly structure This structure maximizes administrative cost. Here, specialists from the project as well as functional authorities involve in project works.
It maximizes paperwork and other information costs.The Matrix Model Advantages & Disadvantages September 29, by zkjadoon Just as its name suggests, the matrix model represents a company structure in which employees and managers of different departments belonging to the same business body are brought closer.
Matrix Organizational Structure Functional departments are combined with product groups on a project basis; there are multiple lines of authority and some individuals report to at least two managers, a combination of functional and divisional structure. Jun 28, · A matrix organization is a cross-functional work team that brings together individuals from different functional departments, product departments or divisions to accomplish a specific goal.
The matrix structure is a type of organizational structure in which individuals are grouped by two different operational perspectives simultaneously; this structure has both advantages and disadvantages but is generally best employed by companies large .
There are three common organizational structures, and project managers work in all of them: functional, project, and matrix.
Let's take a look at the advantages and disadvantages of each so that you know what you're up against when you join a new structure. iv EXECUTIVE SUMMARY Aims and approach This project aimed to develop a Safety Culture Improvement Matrix based on the Business Excellence Model .