Every organization needs a well established organizational structure to reach the organizational goals. Within a matrix, an individual may have multiple supervisors because their work responsibilities are no longer linear. The companys managers and their decisions influence whether the matrixs pros or cons win the day. Typically, an organizational structure provides a framework for reporting relationship between employees. Apr 07, 2017 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 dimensions whereas functional structure is a structure that divides the organization based on specialized functional areas such as production. In a matrix organizational structure, when employees are doing multiple jobs, organizations can become more dependent on them and they get the liberty to perform badly, take days off and even ask for increased pay. This is useful when the functional or product organisational structure fails to meets all the requirements of an organisation. Organizational structure and change semantic scholar. Matrix organizational structures propose two management structures in single organization. Organizational refers to how individual and team work within an organization are structure coordinated. The functional structure serves as the stem while the project structure lasts as long as the project at hand is running. This is a type of organizational structure which facilitates a horizontal flow of skills and informations. This formal organization of a company refers to the structure of jobs, the flow of authority, defining the relations between employees etc. Pdf characteristics of matrix structures, and their effects.
In doing so, it defines the mo and describes its operating. Read on to learn why a company might implement a matrix structure and the advantages. This paper investigates the characteristics of matrix structures and their relationships with drivers of project success, such as communication, collaboration, and trust between project team members. List of the disadvantages of the matrix organizational structure. Matrix organization is more than a matrix structure. A matrix structure is an example of hardwiring, because the two bosses of a manager in a matrixed position have the joint responsibility to set his. Another kind of divisionalisation is matrix or grid organizational structure. For each matrix team or subgroup, there is one functional.
When there is a hierarchical organizational structure in place, teams tend to stay within their defined structures. Our jobs as leaders is to help deliver the advantages and prevent the potential disadvantages. May 03, 2018 pros and cons of a matrix organizational structure. From the hierarchal organizational structure to flatter, less bureaucratic structures and the teamoriented matrix, all organizational structures have advantages and disadvantages in key areas. The matrix structure offers organizations an effective system for managing projects.
The matrix organization structure can deliver this, provided people have the skills to make the matrix work. Aug 30, 2019 matrix management is commonly used in organizations to share employees and resources across functions. List of the disadvantages of a hierarchical organizational structure 1. The advantages and disadvantages must be weighed and the. Everything you need to know about the types and classification of organisation structure. 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. Best practices in matrix organizational structures. The top manager heads the entire matrix and balances the dualchain of commands. Pdf characteristics of matrix structures, and their. Besides, it is essential to maintain a balance among these authorities to bring about uniformity in the organizational performance.
Ford and randolph suggested a number 4 of paradoxes between the advantages and disadvantages of matrix structures. The 6 key advantages and disadvantages of a matrix. If one comes across a horizontal organizational structure, then its natural to assume that there is also a countervailing vertical organizational structure. The key advantages and disadvantages of matrix organizational. As a result the solution is not in changing the structure, but in updating the way we work. There are advantages and disadvantages that need to be understood to know if its the right one for the organization. Types of organisation structure with advantages and. Advantages and disadvantages of organizational structures. This article discusses matrix organizational structure advantages and disadvantages. The design get popularity in 1970s and 80s when big companies like ibm, hp, nestle and citi bank used this structure. In choosing a companys organizational structure, management is searching for the one that will bring the companys moving parts together into a wellcoordinated, efficient and effective unit. Confusion on authority and responsibility is rampant.
Mar 06, 2020 disadvantages of organizational structure include lopsided management lines, increased bureaucracy, slowed communications, and increased inflexibility. It is known to be flexible, nimble, fast, and may lead to multiple reporting lines. First up is the functional structure, which may be hierarchical and permanent. The decision hierarchy is fluid in a matrix structure. Moreover, due to the absence or departure of one employee due to any. Oct 29, 2018 there are three common organizational structures, and project managers work in all of them. Matrix departmentalization may slow down decisionmaking and thus all managers must understand the rules of the game. The matrix structure has three distinctive components 1. Hence to fulfill this vision nsa has design a new structure. It is essential to involve both functional and project specialists. A matrix organizational structure is not a onesizefitsall solution.
This structure is a combination of the functional and projectized structures. In this type of organization, for example, there may be a marketing. Communication, collaboration and decisionmaking are enhanced or limited by the organizational structure. Matrix management is the practice of managing individuals with more than one reporting line which forms a matrix structure to leverage functional infrastructure and optimize efficiency often used to describe management across functions, regions, and even other business units classic example. The former divides departments within a company by the functions performed, while the. These departments might be further divided, depending on a companys size and. Organizational design and structure advantages and disadvantages each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. There are three main types of organizational structure. He is critical to conflict management that intrinsically occurs due to dual chain of commands underneath him. Our jobs as leaders is to help deliver the advantages and.
But it also involves much complexity and demands much communication so that all organizational managersparticularly the project and the functionalcan effectively and efficiently work together. Nov 21, 2018 from the hierarchal organizational structure to flatter, less bureaucratic structures and the teamoriented matrix, all organizational structures have advantages and disadvantages in key areas. There are several advantages and disadvantages of adopting a functional organizational structure. The type of organizational structure product, function, or matrix may also have only one of these potential disadvantages. The 6 key advantages and disadvantages of a matrix organization. If the it department shares its personnel, the company doesnt have to add employees to complete the projects.
The organizations strategy determines the organizational structure that will work best for a business at a particular point. They also create uncertainty within the workplace, as workers may not know who needs to receive information about the work theyve done. The same seminal study of matrix organizations also notes their disadvantages. When a matrix organizational structure is implemented within the workplace, then there are crossbusiness, crossfunctional units which are working together. Essentially, the organization used a functional structure. Identifies typical disadvantages of the matrix organization with the focus on project and functional managers, functional experts, and. Disadvantages of matrix structure manager vs manager. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. Implementing a matrix is a complex process, involving more than just changing the organizational structure, systems, culture, and behaviors over time. A project manager has been given a fixed time to coordinate all the mechanisms to complete the given work within the fixed time. Oct 26, 2014 hence to fulfill this vision nsa has design a new structure. Matrix structure demands a high level of inter personal relations and skill. You dont often hear the term vertical organization structure.
As it acquired each small company, top management first encouraged the owners and general managers. The structure facilitates the horizontal flow of information and skills. Disadvantages of organizational structure include lopsided management lines, increased bureaucracy, slowed communications, and increased inflexibility. Advantage more specialized in certain fields, communication is excellent because of the knowledge one has about the function of the job, easier to work as a team to get better results. Main advantages and disadvantages of the three generic project organizational structures structure advantages disadvantages functional there. Often individuals in the matrix have more than one line manager, or maybe one solid line line manager and one or more dotted line managers. It is not without its disadvantages, which are discussed below. More people become involved in the decision process, which can slow things down. Download citation on jan 1, 2015, krzysztof gos and others published the key advantages and disadvantages of matrix organizational structures find.
Matrix organizational structure of a construction company example ganesh 20 8 table 4 advantages and disadvantages of matrix organizational structure. Due to the complexity of the matrix organization structure, some employees may be confused as to who their supervisor is. Matrix organizational structure advantages and disadvantages matrix structure mainly encompasses functional and project structures. Best practices in matrix organizational structures gssa georgia. If individual department heads can accomplish everything the company needs using the resources in their own silos, theres no need for a matrix. Accountabilities and authority can be less clear and are often shared. Lets take a look at the advantages and disadvantages of each so you know what youre up against when you join a new structure. Organization structure is the pattern in which various organizational activities are divided and assigned among positions, groups, departments, and divisions and the coordinating mechanism among these activities to achieve organizational objectives. Choosing a matrix is a serious, top level decision requiring commitment to a thorough implementation. There are three common organizational structures, and project managers work in all of them. Apr 23, 2019 these challenges are not about the structure or the strategy, they are about the way people work together in the matrix. It must be reinforced by matrix systems such as dual control and evaluation systems, by leaders who. Sep 15, 2016 a matrix organisation structure is one where there are multiple crossfunctional, crossbusiness unit groups.
Communication, collaboration and decisionmaking are enhanced. Functional structure is set up so that each portion of the organization is grouped according to its purpose. An analysis of the main project organizational structures. Difference between matrix and functional structure compare.
When a matrix organizational structure is implemented within the workplace, then there are crossbusiness, crossfunctional units which are. What are the pros and cons of vertical organizational. In a matrix structure, reporting relationships comprise a grid, and each individual typically reports to two managers. Matrix organizational structures one alternative to a traditional hierarchical structure is a matrix structure. Definition a matrix organization is defined as an organization where people have to report to more than one boss. This is mainly applied in large projects or product development processes, and hiring employees from different disciplines the matrix organization structure is where the. It has been recognized that the matrix organizational structure has applications far beyond that of project program or product management 12. Advantages and disadvantages of matrix modern organization. Apr 01, 2012 advantages and disadvantages of organizational structures. Ford and randolph 4 suggested a number of paradoxes between the advantages and disadvantages of matrix. Common organizational structures boundless management. There are powerful reasons to introduce a matrix organization structure thats why many of the worlds leading organizations have one. Pros and cons of 3 project organizational structures.
This structure has dual authority and this may cause division among the employees and managers. First up is the functional structure, which may be hierarchical and. The advantages and disadvantages of matrix organizational structure dont just happen. However, in this discussion the matrix will only be considered from the viewpoint of its most highly developed application that of project management. In a matrix organization, the traditional departments seen in functional structures combine with project teams. Table 4 illustrates the advantages and disadvantages of this type ganesh 20 8. Collaborating outside of a team silo can be difficult to accomplish. These disadvantages may not always persist in an organization. Understand the advantages and disadvantages of mechanistic and organic structures for organizations. Usually, this necessitates an educational effort so that none feel that their decisionmaking is threatened, and nonmanagement members learn how to function with two managers. Meetings and bureaucracy can rise as the amount of coordination and communication increases. Bannerman,19 refers to literature that indicates the following risks. Miscommunication may result to dissatisfaction and ineffective management.
What are the disadvantages of organizational structure. An employee in a matrix structure may be responsible for reporting to his line manager but also reports into a managing director for specific clients. Jan 17, 2015 matrix structure demands a high level of inter personal relations and skill. Combining two organizational structures into the matrix type solves a lot of problems. There can still be a lot of conflict in the workplace.
Suppose your company has two projects that require an it professional on the team. Time limit factor of the matrix structure creates problems in maintaining wide coordination among all the mechanisms of the organization. While this type of organisational structure overcomes the disadvantages of a pure line organisaional structure, it has some major disadvantages. Fig 5 shows an example of matrix organizational structure of a construction company. A matrix organizational structure is one of the most complicated reporting structures a company can implement. Matrix organizational structure in project management.
The functional organizational structure groups employees according to broad business activities, resulting in departments such as finance, marketing and production. When orgchart experts list the advantages and disadvantages of matrix organizational structure, the effective use of employees is a big advantage. The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. Describe how the elements of organizational structure can be combined to create mechanistic and organic structures. The management of a company will build an organizational structure to help achieve the objectives of the company. Matrix organisational structure features, merits and limitations.
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