9 Advantages & Disadvantages of Matrix Organization
In this article, we will see the Advantages & Disadvantages of Matrix Organization. Matrix organisation was first developed in the USA in the early 1960s to solve the management problems developed in the aerospace industry.
In the matrix structure, the employees have to work under dual authority. One authority is functional and the other is a project manager who is an expert in the specific area.
In a matrix organization, group members must report to the functional department head and the project manager, serving as dual bosses.
Table of Contents
Advantages of Matrix Organization
The following are the advantages of matrix organization:
Excellence in inter-disciplinary Specialisation
It is possible to grow technical excellence into many interdisciplinary activities in a matrix organization. This organization aims to solve whole problems with excellent solutions. Therefore, the expertise of specialists is fully utilised in interdisciplinary areas.
Higher Motivation
People associated with project work show team spirit. The project acts as a centre around which people connected with it move.
They are satisfied when the project is completed on time. This feeling of satisfaction increases their morale and encourages them to work on the new project.
Read more – Features & Advantages of Line Organization
Better coordination and control
Due to vertical and horizontal communication, the project manager can coordinate many interrelated aspects of a particular project. This coordination leads to effective control and operation coordination, which is a major problem in other organizational structures but not in a matrix organization.
Reduce Pressure of Work on Top Management
The manager is a trusted authority by the top management to deal with routine administrative assignments. This reduces work pressure on top management, allowing more time for strategic planning, policy formation, and long-range planning.
Fullest use of available resources
A matrix organization is known to handle a number of projects simultaneously. Due to the project-oriented approach, details of requirements of resources are calculated accurately. Resources are easily transferable from one project to the other.
An effective response to the dynamic environment
Because of functional interdependence and quicker feedback of information, the organization responds immediately to changing environment.
Helps Self-development and Growth
A matrix structure enlarges the experience of employees and broadens their outlook. They go through difficult situations and challenges. This process of job rotation facilitates self-development.
Attains social justice
Projects take less time to complete. The management earns a higher margin of profits in such projects.
A part of profits can be used for improving customer relations. Even employees get certain benefits from a matrix organization.
Improves efficiency
The main advantage of matrix organization is that it improves efficiency. This organization is a time-bound project. Unless personnel display efficiency the project cannot be completed on time.
Disadvantages of Matrix Organization
The following are the disadvantages of matrix organization:
Dual control on employees
Employees receive orders from functional heads as well as from the project manager in a matrix organization. This leads to confusion and conflicts. In matrix organization principle of command is violated.
Costly
The matrix organization is costly due to vast paperwork and frequent meetings. Effective communication facilities are required to be provided. These factors make the organisation costly.
Difficult to Manage
Internal operations are difficult and complicated under matrix organization. This happens because of horizontal and vertical lines of authority.
Shifting of staff also takes place frequently. The rules and procedures are not followed uniformly in all departments. That’s why this organization is difficult to put into operation.
The pressure of work on staff
There is too much pressure of work on the subordinates in a matrix organization. They have to follow orders from two bosses. Too much is expected from employees functioning at all levels.
Communication Gap
There is a communication gap between project managers and functional managers. This may lead to confusion.
Problem of Balance
It is difficult to get highly technical engineers to accept the administration cost restraints. It is difficult to maintain the balance between the authority of project heads and functional managers.
Impact of Stress
In project organizations, employees have to work hard to complete the objective within a defined time. The need to ‘speed up’ creates stress.
Complex operations
The internal Operations of Matrix organization are complex. Too much shifting of staff from one another interferes with the training of new employees.
Power Game
The project manager knows his appointment is temporary. He tries to discredit the functional manager and take his position as this is a permanent job.
So these were the 9 Advantages & Disadvantages of Matrix Organization. If you have any suggestions to improve this post, please share them in the comments.
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