What are the advantages and disadvantages of matrix Organisation?

There are powerful reasons to introduce a matrix organization structure – that’s why many of the world’s leading organizations have one. This video outlines the 6 key reasons why organizations introduce a matrix and the importance of communicating these reasons clearly. It also introduces some potential downsides of the matrix for the way we work together.

A matrix structure is, strictly speaking, where we have multiple bosses – more than one formal reporting line, whether solid or dotted.

However, the term matrix is often used for anywhere where we are working ‘horizontally’ across the traditional ‘vertical’ silos of function, geography or other organizational units, such as working with external partners, or multi-functional and virtual teams. This way of working is the norm in complex organizations

6 key advantages of the matrix organization

Here are the top six reasons (from the academic research and our own consulting experience) why companies introduce a matrix:

1. To meet the needs of global or regional customers who want a consistent international agreement and point of contact.
2. To improve their capability to run global or regional projects and systems
3. To improve access to resources, skills and technologies across the organisation that might otherwise be locked up in the vertical silos
4. To improve cooperation and communication across the functional and geographic silos.
5. To bring flexibility through faster decisions involving multiple stakeholders.
6. To build broader people capabilities – as businesses become more integrated they need to develop people who can think beyond their own functions or locations.

It is important that your objectives for having a matrix are well communicated. 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.’

In the absence of clear goals people often assume that the matrix is the latest management fad or the brainchild of some external consultants.

However, when we make a choice we always gain some advantages, and incur some disadvantages. There are some potential downsides that come with the additional complexity and connectedness of matrix working.

And 6 key disadvantages of the matrix

Here are some common challenges

1. Accountabilities and authority can be less clear and are often shared.
2. Meetings and bureaucracy can rise as the amount of coordination and communication increases.
3. More people become involved in the decision process, which can slow things down.
4. Ambiguity increases, with competing goals and higher levels of change and flexibility.
5. We can see increases in central control as leaders try to re-establish control over a more complex environment.
6. There is the possibility of more resource conflict as people need to engage outside their silos to get things done.

Whilst these symptoms are common – they are not inevitable. These challenges are not about the structure or the strategy, they are about the way people work together in the matrix. As a result the solution is not in changing the structure, but in updating the way we work.

Our jobs as leaders is to help deliver the advantages and prevent the potential disadvantages.

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.

Take our free Introduction to the Matrix online learning program.

• Types of matrix organizational structure
  • • Weak matrix organization
    • Balanced matrix organization
    • Strong matrix organization
• ADVANTAGES AND DISADVANTAGES
  • ADVANTAGES OF MATRIX ORGANIZATIONAL STRUCTURES
    • Maximizes resource usage
    • Professional development
  • DISADVANTAGES OF MATRIX ORGANIZATIONAL STRUCTURES
    • Increases the rate of conflict upraise managers and projects
    • Authority confusion
    • Reduced employee effectiveness
    • Increased management overhead costs
  • Why do matrix organizations fail?
  • Matrix organizational structure example
  • Similar Content:

Matrix organizational structure advantages and disadvantages: What is called matrix organization? The matrix organizational structure is a concept that emerged in the 1960s. This organizational structure arose from the aerospace industry. This was when firms who wanted to contract with the U.S.

government employees had outlined in specific charts the structure of the project management team. Since then the matrix structure has over the years continued to be adopted by organizations that need to take on large-scale and complex projects that may not be efficiently completed within a single department in the organization.

This article wishes to discuss the parameters of a Matrix organizational structure. And it is imperative to first understand what is meant by the term matrix organizational structure. A matrix organizational structure is a workplace format in which employees report to two or more managers rather than one manager overseeing every aspect of a project.

Read: Advantages and disadvantages of Lewin’s change model

This can be understood by the example that, an employee may have a primary manager they report to as well as one or more project managers they work under. This type of structure creates an environment where skills needed can be shared with other departments in order to achieve or complete a task.

What are the three types of matrix organizations?

The main types of matrix organization structure include a weak matrix, balanced matrix, and strong matrix. The Matrix organizational structure allows the organization to utilize a wide range of talents and strengths thereby increasing the possibility of success. There are basically three types of Matrix organizational structure. These are weak organizational structure, balanced matrix organizational structure, and strong matrix organizational structure.

Weak matrix organization

A weak matrix organization operates on or is a type matrix organizational structure that is most similar to a traditional workplace hierarchy. This operates with a functional manager who oversees all aspects of a project and acts as the primary source of decision making. While there is a project manager who also acts as a point of authority, they ultimately answer to the functional manager.

Balanced matrix organization

this type of matrix organizational structure gives more authority to the project manager. While the functional manager is available and is the primary authority, employees also report to the project manager.

Strong matrix organization

This type of matrix organization provides the project manager with equal or more power than the functional manager. This is because the project manager has overall control over the distribution of resources and tasks. Below explained are Matrix organizational structure advantages and disadvantages.

ADVANTAGES AND DISADVANTAGES

As part of a functional organizational structure, a matrix organizational structure is often used by organizations to distribute resources and workers across multiple operations. The matrix organizational structure has both advantages and disadvantages within the workplace and Understanding this is very imperative.

Read: Kurt Lewin Model For Change

The benefits and downsides of a matrix organizational structure can help an individual or an organization operate best for their benefit. This article aims at discussing what a matrix organizational structure is. And to outline the advantages and disadvantages of this workplace approach.

ADVANTAGES OF MATRIX ORGANIZATIONAL STRUCTURES

The following are some of the advantages of the matrix organizational structure. These benefits will
Increases communication efficiency

What are the advantages of matrix structure?
A matrix organizational structure encourages inter departments communication and collaboration on a project. It increases the efficiency of conflict resolution in an organization.

This is because employees answer to multiple managers as opposed to just the functional manager, issues are resolved more quickly, and company-wide interaction is increased. Employee motivation and teamwork a matrix organizational structure can promote motivation among employees. It gives employees more autonomy and input in projects.

This type of structure encourages employee contribution and places a higher value on work. In a matrix organization, employees work on projects and with various departments for functional organizational structures within the company hence promoting teamwork across the board. Further, This enhances employee interaction and promotes a better sense of teamwork.

Maximizes resource usage

The matrix organization increases the effective use of resources. This organization structure allows resources to be maximized because of how equipment and employees are shared across projects. A matrix structure also allows project managers to work in the areas of their expertise rather than being pulled across multiple projects. This boosts the overall contribution of their skills.

Professional development

A matrix structure allows employees to learn different skills. This is achieved because it promotes a wide coverage of working on different projects. Exposure to various job duties and responsibilities can increase employee development and enhance their professional skills.

DISADVANTAGES OF MATRIX ORGANIZATIONAL STRUCTURES

Conversely, the matrix structure may sometimes be difficult in achieving total structure in an environment where managers hold equal superiority over their shared team members. While there are many benefits to this type of organizational structure, there are also a few disadvantages to consider. These include:

Increases the rate of conflict upraise managers and projects

Due to the fact that the matrix organizational structure promotes employees to answer to two or more managers and work on multiple projects, it might cause workers to become conflicted between managers and projects. Also, because there are multiple managers in charge, there is the potential for inconsistent managing directives among teams.

Matrix organizational structures employ two or more managers whom employees answer to. This can cause several potential challenges. These include confusion as to who the supervisor is, undefined responsibilities among managers, and the possibility of managers opposing each other’s decisions.

Reduced employee effectiveness

Oftentimes in a matrix organizational structure, employees are assigned to multiple tasks across a number of projects. This can result in reduced employee effectiveness and increased ambiguity as employees try to decide which tasks are most important.

Increased management overhead costs

This type of organizational structure can be costly in terms of management since multiple managers are put in place for a project. As a result, management overhead costs can increase, and the overall company budget can be impacted.
Finally, The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management.

Read: Functional organizational structure

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. These two or more managerial systems intersect on a grid or matrix.

Why do matrix organizations fail?

Matrix organizations fail today due to several key disadvantages which really affect organizations using a matrix structure: The biggest problem with Matrix is that Managerial roles are not sometimes clearly defined. People working in the organization under Matrix organizational structure, have Team roles not well defined. The decision-making process under Matrix organizational structure can be very slow and affects the process, especially under bureaucratic organizations or management.

Matrix organizational structure example

In the USA Matrix organizational structure example is that of Google which has a matrix structure, that helps set the workplace format in which employees report to two or more managers rather than one manager overseeing every aspect of a project. Primary characteristics of Google’s Matrix organizational structure include function-based definition, marketing, product or project-based definition, and flatness.

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