Question

what are the advantages and disadvantages of matix organizational structure

Answer 1

Organizations are set up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals. There are three main types of organizational structure: functional structure, divisional structure and a blend of the two, called matrix organisational structure. Matrix structure, is a hybrid of divisional and functional structure. Typically used in large multinational companies, the matrix structure allows for the benefits of functional and divisional structures to exist in one organization. This can create power struggles because most areas of the company will have a dual management--a functional manager and a product or divisional manager working at the same level and covering some of the same managerial territory.(Writing,2018)

Advantages of matrix structures are:

• Clear articulation of project objectives
• Workable way of integrating project objectives with functional objectives
• Efficient use of limited human resources
• Rapid (often interdisciplinary) information flow through the project
• Retention of expert teams through the life of the project
• Rapid dispersion of team members back into the functional organization upon project completion without organizational disruption
• Project management trains managers to become leaders in the functional organization
• Project structures develop team spirit and high morale
• Possibility of conflicts arising during the project carrying over to functional management

The matrix organizations also notes their disadvantages:

• Two-boss problems, leaving project members caught in the middle
• Project members playing bosses against one another
• Increases organizational complexity
• Requirement for high degree of cooperation between functional and project management
• Potential for conflicting management directives
• Difficulty of establishing priorities suiting both functional and project management
• Possible slowdowns in management reaction to events when two structures required for solution
• Possible structural collapse in "crunch time"
• Increase in management overhead costs (Gleeson,2018)

REF:

1.Alexis Writing,2018,Different Types of Organizational Structure, retrieved from https://smallbusiness.chron.com/different-types-organizational-structure-723.html

2.Patrick Gleeson, Ph. D.,2018,Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations. Small Business - Chron.com.