Someone who is in charge of marketing, for example, may also be responsible for customer service issues, being a liaison to the community, and perform sales functions in addition to their marketing responsibilities. Lack of teamwork and reduced flexibility may cause conflicts between departments and units. Advantages and disadvantages of matrix structure Essay Sample. The Project Manager can source specialist skills by liaising with the Functional Heads and identifying who is available, their ability and ultimately use them on the project. Furthermore, what is a matrix organizational structure advantages and disadvantages? Advantages. At the end of the day, you’re asking people to do more for the same wage with this structure, so if there are no self-gratified workers present, there can be a lot of rebellion. The latest industry insight all from our blog, Our popular podcasts will keep you updated, Mail at: [email protected] 2. Meetings and bureaucracy can rise as the amount of coordination and communication increases. 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. And are there more advantages than disadvantages when managing projects under such organizational structures? Departments work closely together and communicate with each other frequently to solve issues. When all the employees of a certain specialisation are grouped together, they are able to better take advantage of teamwork to accomplish their collective tasks. When a worker is pulled from one department to the other for a project, they might be asked to complete work that competes with the objectives present in their own job. With a matrix organizational structure, one worker can be in charge of all the customer service experience needs across all the departments because their experience can be pulled by all three departments. One common disadvantage of the matrix structure can appear as confusion between managers who are involved with projects that are outlined by the matrix. It creates a company-based approach instead of a team-based approach. Reddit. Teamwork. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. The Matrix Structure Diagram is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. January 2015 ; DOI: 10.7172/1733-9758.2015.19.5. READ MORE on www.whizlabs.com If a car manufacturer wants to design, produce and market a new model, the process involves most parts of the organisation and a flexible/adaptable system is needed to achieve the objectives. They do still have their Line Manager from their Functional Department. 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. It is often used when the firm has to be highly responsive to a rapidly changing external environment. It will require specialist knowledge from a number of different departments. Would highly recommend both the course and Michelle. APM Project Fundamentals Qualification (PFQ), APM Project Management Qualification (PMQ), APM Project Professional Qualification (PPQ), Project Management Chartered Standard (ChPP), APM Project Management Qualification (PMQ) Virtual Classroom, APM Project Management Qualification (PMQ) Exam Prep and Exam, APM Project Fundamentals Qualification (PFQ) Classroom, APM Project Professional Qualification (PPQ) Excluding Assessment. In a hierarchal structure, the company might decide to hire three employees to cover these issues – one for each department. A strong organizational structure is better able to prepare qualified employees for management. Advantages of a Matrix Structure. Matrix structure is often used when cross-functional teams are created to run a project. A matrix organizational structure is most commonly used in companies to distribute resources and workers across multiple operations. Instead of being in charge of a team, these managers and supervisors are in charge of projects. Advantages and Disadvantages of organizational structures.Departmentalization: Advantage- More specialized in certain fields, communication is excellent because of the knowledge one has about the function of the job, easier to work as a team to get better results.Disadvantage-Staff does not always know the case of the client in detail, other organizations may not always talk to the same … The matrix structure is for this reason advantageous in stimulating organizational performance with minimal drawbacks equally discussed thereafter. Matrix structures also allow for specialization that can both increase depth of knowledge and assign individuals according to project needs. READ MORE on smallbusiness.chron.com . Some examples of these conflicts include issues with decision-making, authority over resources, and control of teams or people. This article examines the matrix organization (MO). You also need workers who are gratified by the work that they do and are passionate about the company. Advantages of matrix structure are: - 1. The matrix structure offers organizations an effective system for managing projects. This sort of arrangement has both advantages and disadvantages. If you like what you see, please do get in touch to discuss how we can support your organisation. Projectized organizational structure has both advantages and disadvantages. Instead of being limited to their own silo, workers can be moved from place to place when demands make it necessary. One manager would be … The matrix organization has many advantages which far outweigh its . The key difference between matrix structure and functional structure is that matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions whereas functional structure is a structure that divides the organization based on specialized functional areas such as production, marketing, and sales for the purpose of … The matrix structure, which is a combination of structures, has, therefore, become popular. One issue that many companies face is a lack of awareness of the overall vision and mission of the organization at the entry-level positions of the company. Both issues create a conflict in loyalty that can lead to issues of worker retention over time. The matrix structure of Nike also accumulates the disadvantages of all different types of organizational structures in it. 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