Matrix Organizational Structure Advantages And Disadvantages Pdf

matrix organizational structure advantages and disadvantages pdf

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Read on to learn what is a matrix structure diagram, matrix structure diagram examples, and the advantages and disadvantages for both company and staff. The Matrix Structure Diagram is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. It is often used when the firm has to be highly responsive to a rapidly changing external environment.

When a business initiates a project, it can be crucial to have an organizational structure in place to define all the aspects of the project. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. The matrix organizational structure can offer flexible ways for businesses to work on projects, however, it may be difficult to initially implement due to the multiple aspects within a project.

Matrix Organizational Structure: Advantages and Disadvantages

PL EN. Search Browse About. Article details. Link to site. Article title. Full texts: Download. Title variants. Kluczowe zalety i ograniczenia macierzowych struktur organizacyjnych. Languages of publication. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. After providing a brief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. In the reviewed publications, three characteristics are considered primarily as advantages of matrix structures, one as a disadvantage, whereas the four remaining arouse controversies as to their beneficial or negative nature.

The controversial characteristics are indicated as a field for further investigation. Physical description. Faculty of Management, University of Warsaw, gos. Anderson, R. Matrix Redux — Matrix Management. Business Horizons, 37 6 , 6— Appelbaum, S. Performance evaluation in a matrix organization: a case study Part One.

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Matrix Structure Diagram Advantages, Disadvantages & Examples

When a matrix organizational structure is implemented within the workplace, then there are cross-business, cross-functional units which are working together. Within a matrix, an individual may have multiple supervisors because their work responsibilities are no longer linear. 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. This person would manage multiple projects for several different supervisors, even though none of them may be their direct supervisor. Here are some of the advantages and disadvantages of having a matrix organizational structure in the workplace. When a matrix organizational structure is implemented, then everyone stays busier on any given day. Instead of being limited to their own silo, workers can be moved from place to place when demands make it necessary.

A matrix organizational structure is an organizational-based foundation where the reporting relationships get set up as a grid. That means the traditional hierarchy disappears in the chain-of-command. Instead of reporting to a single supervisor or manager, employees have dual-reporting duties. There is usually a product and a functional manager that oversees productivity each day. Most large companies use the matrix organizational structure because of the efficiencies that it produces.

A matrix organizational structure is most commonly used in companies to distribute resources and workers across multiple operations. This type of structure can have both advantages and disadvantages within the workplace. Understanding the benefits and downsides of a matrix organizational structure can help you determine if this type of structure is best for your company. In this article, we will discuss what a matrix organizational structure is as well as the advantages and disadvantages of this workplace approach. 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. For example, 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 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, boosting the overall contribution of their talents.


19 Advantages and Disadvantages of Matrix Organizational Structure

Organizations with hierarchical structures are easily graphed and defined. Often described as "tree structures," they are unambiguous and relatively permanent organizational models, in which each element in the organization reports to a higher element and concludes with the CEO or Board of Directors at the top. A matrix organizational structure, by contrast, is everything that a hierarchical structure is not. There are separate chains of command and employees are generally accountable to more than one boss.

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures.

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Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations

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Carolos D.

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Comforte L.

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Combines project and functional management structures. Allows interdepartmental communication. Employees can develop new skills. Team members and managers keep their functional roles.

Beaupeptelsster1961

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An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing.

Dawn F.

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PL EN.

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