That is why clear communication is necessary within this structure on a consistent basis. 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. Employees might suffer burnout or overlook or fail to complete tasks or have their quality of work suffer due to time constraints. 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. The lower you are on the chain of command, then the less you pay attention to the 5-year plan. In reality, managers keep their best people within a fenced ring to prevent their experience from benefitting other teams. 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. Increased costs if more project managers are created through the an … This type of structure can have both advantages and disadvantages within the workplace. When a matrix organizational structure is being used, you must have workers who are willing to be multi-dimensional with their work duties. That means the people who are pulled to work on other projects have fewer skills and experience, which eventually degrades the quality of the products or services produced. Within the matrix organizational structure, the functional manager might manage their team by department, typically outlined vertically on the matrix. Matrix Structure Advantages. Although the matrix organizational structure attempts to reduce conflict in the workplace, it tends to create plenty of drama when implemented. 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… Consider having managers outline clear expectations of what each of their team members will be responsible for. Even though the matrix structure has some disadvantages, matrix organizations provide clear accountability within a specific business function and allow more efficient allocation of specialized skills across the entire business. This structure makes it easier to share resources in different divisions. In a standard chain of command, a worker would have a direct supervisor to whom they would report. If you pull in resources from another department to work on a project, there will be workers who feel like they’re being told they are incompetent. Home » Pros and Cons » 15 Matrix Organizational Structure Advantages and Disadvantages. Advantages of a Matrix organization structure. The advantages of this structure are: Resources are used efficiently and can move around between projects as needed. Projects will always continue to come to an end, but project team members and managers may keep their functional roles throughout the project. The matrix organizational structure allows for more collaboration between departments rather than searching for solutions from the top level and downward. When a worker is pulled from one department to the other for a project, they might be asked to complete work that competes with the objectives present in their own job. This sometimes can cause conflict if they are asked to carry out tasks from both areas. ... Main advantages and disadvantages of the three generic project organizational structures Structure Advantages Disadvantages Functional There is no need to negotiate and compete with other areas for resources. This increase in complexity can result in a higher manager-to-worker ratio, which can in turn increase costs or lead to conflicting employee loyalties. And 6 key disadvantages of the matrix. Ultimately, with careful planning, clear expectations and open, effective communication, the matrix organizational structure can be an advantageous method of organizing multiple roles and departments when undertaking a large-scale project. 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. Team … When team roles are outlined using a matrix structure, employees may often be required to communicate on a consistent basis with both managers, detailing their overall progress and to clarify any misconceptions of what work they are responsible for. One issue that many companies face is a lack of awareness of the overall vision and mission of the organization at the entry-level positions of the company. Suppose your company has two projects that require an IT professional on the team. Each of these has their own advantages and drawbacks. Additionally, team members might have misconceptions about how they are expected to divide their time between their functional duties and their project responsibilities. The matrix structure is for this reason advantageous in stimulating organizational performance with minimal drawbacks equally discussed thereafter. Some key details to consider when outlining your project within the matrix may include: Consider how you will outline each expectation of the managers involved with the project. Both issues create a conflict in loyalty that can lead to issues of worker retention over time. When the matrix structure is used, then you can pull someone with relevant experience from any department. This could create a psychological stress among these individuals as an element of uncertainty would always exist. That means you’re working on multiple projects at once instead of one project at a time. Advantages of Matrix Organization. Communication, collaboration and decision-making are enhanced or limited by the organizational structure. Each one provides a small contribution to the customer service experience. When planning projects within a matrix structure, you might consider methods to increase employee engagement and hold staff accountable for their work. If there is someone in sales with marketing experience and the marketing department needs help, then that person can be pulled. 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. No one is perfect. The information on this site is provided as a courtesy. There can be conflicts or power struggles among different managers overseeing the same team or individuals. Read on to learn why a company might implement a matrix structure, and the advantages and disadvantages for both company and staff. 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. You also need workers who are gratified by the work that they do and are passionate about the company. Through quality assurance protocols, there may be corrections that need to be made in the work completed. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 15 Matrix Organizational Structure Advantages and Disadvantages, 15 Hierarchical Organizational Structure Advantages…, 15 Collaborative Structure Advantages and Disadvantages, 12 Hot Desking Advantages and Disadvantages, 16 Limited Liability Partnership Advantages and…, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. There is a lot of flexibility within the matrix because people can be placed into any position, at any time, to focus on their experiences and strengths. 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. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager. This structure has dual authority and this may cause division among the employees and managers. 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. It Is Expensive To Maintain and There May Be Internal Conflict: Matrix organization is expensive mainly because of dual management. Each employee within the human resources department, for example, might report to the human resources department manager. It can shift between the needs of the various projects under development and the company’s functional units. 1. Functional managers oversee entire departments of an organization. They need to love being able to do something different every day. The Key Advantages and Disadvantages of Matrix Organizational Structures. Because of its complexity, and the need for employees to report to two bosses, it can lead to: 1. confusion regarding roles, responsibilities and priorities 2. divided loyalties between project teams 3. blurred lines of accountability 4. difficulties in coordinating tasks or functions 5. power struggle between the project manager and the functional manager 6… The downside of this approach is that the roles of different people may change according to a change in the project. Someone who is in charge of marketing, for example, may also be responsible for customer service issues, being a liaison to the community, and perform sales functions in addition to their marketing responsibilities. All projects the team members may be working on can eventually be completed while their functional roles within the organization are permanent. It may be slightly difficult for all the employees to fully understand and integrate themselves into this 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. By allowing different departments to work together, the matrix structure fosters a more open work environment, ultimately making the organization more dynamic. If teams have a lot of independence they can be difficult to monitor. 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. In a matrix structure, the importance of entry-level and middle management positions is greatly reduced. There is less overall downtime within the workplace. Additionally, the matrix structure allows the managerial roles to be changed depending on the company’s needs and its current projects. The decision-making process can be slowed down. Disadvantages of matrix structure Manager vs Manager In addition to the vertical and functional outline, the project manager might manage their teams across different departments, generally outlined horizontally within the matrix. Additionally, team members may also participate in future projects. You can set professional and personal goals to improve your career. Departments work closely together and communicate with each other frequently to solve issues. The most complete project management glossary for professional project managers. By working in a matrix organisation the resources are only seconded to the project for limited amount of time. A matrix organizational structure is most commonly used in companies to distribute resources and workers across multiple operations. Workers can feel torn between their “regular” duties and the jobs assigned to them by the matrix. Everyone needs to work the same way to prevent communication issues. When a project is completed, the pulled workers can be put back onto their teams with little difficulty. They gain the advantage of having dual support. List of the Advantages of the Matrix Organizational Structure 1. Project management guide on Checkykey.com. When a matrix organizational structure is implemented, then everyone stays busier on any given day. Advantages. The organization sees little disruption with the movement, assuming communication is happening across team and project lines. Many managers need to work together, on teams of their own, to ensure that workers are completing their work assignments as expected. For example, you might require employees to fill out a weekly report template outlining tasks completed toward the project. For example, a company could have human resources, marketing, operational and finance departments. In a perfect world, the matrix organizational structure would always put the best people into the places where they are needed the most. When a business initiates a project, it can be crucial to have an organizational structure in place to define all the aspects of the project. There are some potential downsides that come with the additional complexity and connectedness of matrix working. Advantages & disadvantages of matrix structures Advantages . When that occurs, the outcome is almost always an inconsistent message from those who are in charge. Its objective is to carry out operations smoothly and efficiently. The matrix structure may oftentimes be adopted by companies that need to manage daily operations in conjunction with ongoing projects. 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. Advantages of matrix structure are: - 1. At the end of the day, the worker becomes confused and this reduces their productivity. Team members may need to perform their functional role within the company and perform separate tasks for the project manager. ", 23 Ontario Wine Industry Statistics and Trends, Spotify SWOT Analysis for 2021: 26 Strengths and Weaknesses, Uber SWOT Analysis for 2021: 23 Major Strengths and Weaknesses, Netflix SWOT Analysis (2021): 23 Biggest Strengths and Weaknesses, Tesla SWOT Analysis (2021): 33 Biggest Strengths and Weaknesses, 14 Core Values of Amazon: Its Mission and Vision Statement, Is AliExpress Legit and Safe: 15 Tips for Buyers, How Does Zoom Make Money: Business Model Explained, A Look at Southwest Airlines Mission Statement: 10 Key Takeaways, Apple’s Mission Statement and Vision Statement Explained, How Does WhatsApp Make Money: Business Model & Revenue Explained. Job functions drama when implemented staff and departments that may not be well suited for businesses working a... 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