Advantages of the matrix organization structure the main benefit of matrix organization is that highly skilled and capable resources can be shared between the functional units and important strategic projects. Matrix advantages and disadvantages organizations with a matrix structure have no chain of command employees work in teams, which they develop and organize. 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. The matrix structure blends the functional and divisional structures, gaining the advantages of both each person belongs to a functional department such as production, reporting to a boss above each person also answers to a project team or business unit.
Advantages of a centralized structure include a focused vision, fast execution and efficient decision-making management has clear control of operations, easy coordination and limited conflicts, since few people are responsible for making decisions centralized structures are efficient in business. The disadvantages of a global matrix structure organization arise from the dual/multiple reporting structure power struggles between the functional and product managers or between the product and area managers can prevent successful implementation of matrix structural arrangements. The primary advantages of a flat organizational structure in business include direct involvement of workers in the decision-making process, better communication flow, faster response times to business challenges, and an open, collaborative environment that promotes idea generation and innovation a.
Advantages and disadvantages of matrix structure essay sample one of the advantages of implementing the matrix organizational structure in a business is that it can lead to an efficient exchange of information. A matrix organizational structure is one of the most complicated reporting structures a company can implement read on to learn why a company might implement a matrix structure and the advantages. The matrix organization structure can deliver this, provided people have the skills to make the matrix work this is a type of organizational structure which facilitates a horizontal flow of skills and informations this is mainly applied in large projects or product development processes, and hiring employees from different disciplines the matrix organization structure is where the. Advantages of a matrix structure a matrix structure has its pros and cons fewer people, more work following the matrix structure, the employees are given more tasks instead of hiring new people the company can use the existing workforce to get tasks done this way, people can move freely and can do the work more efficiently as there are.
A matrix organizational structure groups employees by the product they produce and the functions that they perform teams of employees are used to accomplish a task and it focuses on employee's strengths in a decentralized management structure. The matrix organization has many advantages which far outweigh its principal disadvantage of complexity among the more universally accepted advantages of the matrix which go beyond the advantages of project management in general are the following (2)(22): problems of the matrix the matrix organization does have some disadvantages and. A functional organizational structure is one of several reporting structures a company could implement read on to learn why a company might implement a functional structure and the advantages and.
34 matrix structure we have seen that functional, product or service, and geographical structures all have disadvantages in a matrix structure, each person has two reporting lines: (i) to the functional head and (ii) to a project, product, service or region manager. Image: project organization – types, advantages & disadvantages project organization structure in this structure, project members are chosen for their special capabilities in the light of the goals to be accomplished from different functional departments, viz, production, engineering, quality control, marketing research, and marketing. 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 enough to justify the increased complexity.
The matrix model advantages & disadvantages september 29, 2016 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. Conclusion like many other organizational structures, the flat organization structure also has its share of advantages and disadvantages whether or not it is for your business, it depends on the size and type of your company. From the hierarchal organizational structure to flatter, less bureaucratic structures and the team-oriented matrix, all organizational structures have advantages and disadvantages in key areas communication, collaboration and decision-making are enhanced or limited by the organizational structure.
Organizational structure defines the way in which the people and resources are organized and coordinated by the authority to achieve the organizational goals hybrid structure, otherwise known as matrix structure, is a type of organizational structure within a company/organization that is a. Matrix organisational structure: it is a permanent organisation designed to achieve specific results by using teams of specialists from different functional areas in the organisation the matrix organisation is illustrated in exhibit 108.
Compartmentalization one of the disadvantages of a matrix organization is that it can lead to over-compartmentalization in a company as each department focuses more and more on its own tasks, departments may fail to effectively communicate with one another. The following are the advantages of divisional organisation structure: (1) development of divisional heads: the head of each division looks after all the functions connected with their product that is, purchase, sale, advertisement, production, finance, etc. In a matrix organization, the employee has a responsibility to combine two sets of instructions in a meaningful way the structure leaves more discretion with the employee and less control with each manager.