We cover stories to empower you with the knowledge, tools & advice to help you thrive in life and business. You can choose the best people there are in each department. We’re a strategy, business & marketing resource. In the absence of clear communication, the response to reorganization is often ‘I will keep my head down and it will go away in six months.’. The company can use the existing workforce to get tasks done. The current types of organizational structure of project management are: functional organizational structure, project-based organizational structure and matrix organizational structure. The scenario will be; manufacturing unit working under the manufacturing manager, sales unit working under the sales manager, finance unit working under the finance manager and human resource unit working under the human resource manager. These matrix organizational structure advantages and disadvantages must get taken into consideration at the local level. Due to this divided flow of horizontal and vertical authority, this type of organization is said to have a ‘matrix’ structure. Save my name, email, and website in this browser for the next time I comment. The second boss is the one who gets the authority due to flat hierarchy. Unlike the vertical managers who have a single type of units working under them. Fewer people, more work. Meetings and bureaucracy can rise as the amount of coordination and communication increases. Explore an interactive graphic of our matrix management learning path showing how we train leaders to overcame these potential disadvantages.See more of our insights including more blogs, free webinars and white papers on matrix management. Following the matrix structure, the employees are given more tasks instead of hiring new people. Matrix structure becomes too autocratic when it comes to the number of managers. - Advantages and disadvantages of a balanced matrix (mainly from a project management perspective) Is an organization that adopts a balanced matrix structure a good place for a project manager to work in and thrive? It isn’t usually the best option for small business owners, partnerships, or sole proprietors, but it could be a This video outlines the 6 key reasons why organizations introduce a matrix and the importance of communicating these reasons clearly. Moreover, due to the absence or departure of one employee due to any reason, more than one job will be affected which will, in turn, affect more than one system. To bring flexibility through faster decisions involving multiple stakeholders. We work with a wide range of clients from global multinationals to recent start-ups. The junior lawyers have to do whatever any partner tells them to do. To meet the needs of global or regional customers who want a consistent international agreement and point of contact. We are deep content experts in remote & virtual teams, matrix management and agile & digital leadership. A matrix structure has its pros and cons. asked 9 years ago by anonymous. A matrix structure is, strictly speaking, where we have multiple bosses – more than one formal reporting line, whether solid or dotted. The delay can be due to the fear that any wrong decision can distort the entire system. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of skillsets that are often spread across the business. The 6 key advantages and disadvantages of a matrix organization. 2. There are some potential downsides that come with the additional complexity and connectedness of matrix working. People are becoming more and more aware of the motivational phenomena lately and managers are becoming ever more careful, so they tend not to be too harsh on employees. There is no need for orientations, inductive training, and similar activities. Following the matrix organizational structure, allows you to choose people for a project from within the organization. READ MORE on www.projectsmart.co.uk We can tailor content closely to your specific needs or deliver off the shelf bite sized modules based on our existing IP and 25 years of training experience. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager. Moreover, the modern era and advantages of technology make it possible to process and deliver tons of data/information in a matter of seconds. Strong Matrix. The matrix structure offers organizations an effective system for managing projects. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. The balanced matrix is a hybrid of the weak and strong matrix. This is mainly applied in large projects or product development processes, and hiring employees from different disciplines. The current era favors democratic culture more than the autocratic culture and when there are many managers ordering their own work on employees, motivation level would fall drastically. But it also involves much complexity and demands much communication so that all organizational managers--particularly the project and the functional--can effectively and efficiently work together. During a project, an organization usually follows the matrix structure. A matrix organizational structureis a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. Disadvantages of the Matrix Organizational Structure. Here are the top six reasons (from the academic research and our own consulting experience) why companies introduce a matrix: It is important that your objectives for having a matrix are well communicated. Type above and press Enter to search. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. Similar to the strong matrix, the project manager is a full-time role. Weak Matrix Structure. When information flows vertically as well as horizontally in a matrix structure, it is much efficient. Moreover, the manufacturing unit, the sales unit, finance unit and human resource unit work under each manager, respectively. The figure above displays the fundamentals of a matrix organizational structure. Power enjoyed by the functional as well as project manager in the same manner. Advantages of this structure: First, the use of personnel with greater flexibility, as long as the choice of a suitable. When a structure has a two-way flow, an important decision might get delayed too. The following are a few advantages of a matrix organization structure: 1. Take our free Introduction to the Matrix online learning program. Moreover, chances of faults, misplacements, and accidents increase too when the system is so widespread and complex. On the other hand, if the firm transfers you to the project permanently, you will not be reporting to two managers. This site uses Akismet to reduce spam. For example, if you are a software engineer at a firm and that firm receives a project that requires a software engineer, so they hire you instead of a new candidate. Now, you will be reporting to your primary boss as well as the new project manager. Our jobs as leaders is to help deliver the advantages and prevent the potential disadvantages. This may cause harm to the organization and the employees working for them. To improve cooperation and communication across the functional and geographic silos. The horizontal orders will be from the manager of project A, manager project B and manager project C. Each project has a manufacturing unit, sales unit, the finance unit, and human resource unit. Functional managers and project managers may have grudges against each other. 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 lesser distractions.