In this sense we will analyze the ganization, clear project organization and combined or matrix system. More people become involved in the decision process, which can slow things down. The 6 key advantages and disadvantages of a matrix organization. This is a challenge to matrix management that leaders should consider carefully. Best practices in matrix organizational structures december 20. Pdf characteristics of matrix structures, and their. Types of organisation structure with advantages and. After the objectives of an organization are established, the functions that must be performed are determined. While a functional organization structure may be more common in longestablished companies, a matrix organizational structure could benefit startups since its more nimble and responsive.
Both structures provide a critical framework to a companys success, and its important to identify the best one. The same seminal study of matrix organizations also notes their disadvantages. After providing abbrief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. Accountabilities and authority can be less clear and are often shared.
Organization is the process of dividing up of the activities. There are powerful reasons to introduce a matrix organization structure thats why many of the worlds leading organizations have one. Their functional manager can help them with their knowledge and skills. Read this article to learn about matrix organisation. Matrix organizational structures propose two management structures in single organization. The matrix organization has many advantages which far outweigh its principal disadvantage of complexity. This post was most recently updated on july 31st, 2018.
Requirement for high degree of cooperation between functional and project management. The key advantages and disadvantages of delegation of. Concepts and f0rmats when two or more people work together to achieve a group result, it is an organization. When a matrix organizational structure is implemented within the workplace, then there are crossbusiness, crossfunctional units which are working together. Pdf 257kb by clarifying roles within a matrix organization, managers can boost both the engagement of the workforce and a companys organizational health. Organization structure is the pattern in which various organizational activities are divided and assigned among positions, groups, departments, and divisions and the coordinating mechanism among these activities to achieve organizational objectives. Projectized organization also encourages instantaneous cooperation, sound communication, and milestones. The real advantages and disadvantages of decentralization. An analysis of the main project organizational structures. Matrix organization and its advantages and disadvantages. The advantages and disadvantages of matrix organizational structure dont just happen. In matrix organization, some employee usually work under more than one boss. Pros and cons of 3 project organizational structures.
The vast majority of large complex organizations today operate some form of matrix organization. There are three common organizational structures, and project managers work in all of them. In contrast, decentralization involves delegation of responsibility and the associated decisionmaking powers. Characteristics of matrix structures, and their effects on project success article pdf available in south african journal of industrial engineering 261. First up is the functional structure, which may be hierarchical and permanent. Matrix organization the matrix organization was introduced in the usa in 1960. In a functional organization structure, the project. This is mainly applied in large projects or product development processes, and hiring employees from different disciplines. Project members playing bosses against one another. Lets take a look at the advantages and disadvantages of each so you know what youre up against when you join a new structure. There must be strategies in place to deal with the potential negatives which like to occur under this structure. The advantages and disadvantages of a hierarchical organizational structure involve communication, innovation, and collaboration. If no effort is made to deal with the negativity, then a company becomes more likely to fail because. Among the more universally accepted advantages of the matrix which go beyond the advantages of project management in general are the following 222.
These are just some of the advantages and disadvantages of matrix management. In an organization, centralized way of making a decision entails less autonomy to everyone except the central leadership. The matrix organization structure can deliver this, provided people have the skills to make the matrix work. They also create uncertainty within the workplace, as workers may not know who needs to receive information about the work theyve done. Examples, definition, advantages and disadvantages.
Matrix organization and its advantages and disadvantages a matrix organizational structure reveal relationships are set up as a matrix or a grid rather than in the traditional hierarchy. The matrix organization structure is blend of projectized organization and the functional organization and takes the best of the both world. Types of organization types of departmentalization centralization and decentralization organization is a system of cooperative activities of two or more persons. In choosing a companys organizational structure, management is searching for the one that will bring the companys moving parts together into a wellcoordinated, efficient and effective unit. Disadvantages of matrix organization structure violation of unity of command in matrix structures, subordinates have to follow instruction from more than one superior.
The advantages and disadvantages of a matrix organizational structure make it easier to move resources to the most important projects which need to be completed. But it also involves much complexity and demands much communication so that all organizational managersparticularly the project and the functionalcan effectively and efficiently work together. Additionally, this report examines best practices gleaned from the literature and from organizations that have successfully implemented and maintained such structures. Efficiency considerations of matrix structures in multinational corporations doctoral dissertation summary. Matrix organisation or grid organisation is a hybrid structure combining two complementary structures functional departmentation with pure project structure. If individual department heads can accomplish everything the company needs using the resources in their own silos, theres no need for a matrix.
In doing so, it defines the mo and describes its operating. Dealing with the disadvantages of a matrix organization. In this type of organization, authority flows from top to bottom. What advantages and disadvantages are associated with this type of organization. Organization an organization is an entity including a number of people for example institution or an association which has a common goal and connected to an external environment. The list could go on, depending on the unique circumstances that organizations have. In a matrix organizational structure, when employees are doing multiple jobs, organizations can become more dependent on them and. In this video, disadvantages of a matrix organization, i will talk about some of the potential disadvantages of operating a matrix organization, and how to deal with them. Suppose your company has two projects that require an it professional on the team. This video outlines the 6 key reasons why organizations introduce a matrix and the importance of communicating these reasons clearly. Advantages and disadvantages of matrix modern organization structure better coordination and control adaptable to dynamic environment maximum use of resources. Here the knowledge, skill and talent of an employee is shared between the functional department and project management.
Matrix organizational structure is really beneficial to the employees. However, a matrix organization structure also introduces a higher level of internal complexity and some additional people management challenges, so there must be significant advantages to a matrix organization structure that outweigh the matrix people management challenges. Twoboss problems, leaving project members caught in the middle. The matrix structure offers organizations an effective system for managing projects.
Team members are familiar with each other since they work in the same area. If the it department shares its personnel, the company doesnt have to add employees to complete the projects. If the organization will have several projects, the resources may be doubled and there may be miscommunication when it. 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. Making the most of the matrix organization mckinsey. The 6 key advantages and disadvantages of a matrix. The differences in engagement at more and less matrixed organizations suggest advantages and disadvantages that may cancel one another out. Within a matrix, an individual may have multiple supervisors because their work responsibilities are no longer linear. Meetings and bureaucracy can rise as the amount of coordination and communication increases.
1580 175 722 1486 1288 1651 413 712 1305 629 142 1128 1151 4 920 376 393 1139 362 640 1411 1026 1212 675 40 649 422 130