MATRIX ORGANISATION STRUCTURE Merits of Matrix Organisation The benefits or merits or advantages of a matrix organisation are:- Sound Decisions : In a Matrix Organisation, all decisions are taken by experts. 11.3) Advantages of matrix organization The matrix organizational structure divides authority both by functional area and by project. It is designed to cope with an increasingly complex production of large industrialists. Disclaimer 9. SWOT analysis or a SWOT matrix is a framework and tool for analyzing the internal and external situations of an organization, a particular business strategy or directions and decisions, a product or a brand, or a specific project or activity, among others. A matrix structure has its pros and cons. For example, a company could have human resources, marketing, operational and finance departments. An Incident - Matrix Organisation. Managerial roles may not be clearly defined. Oftentimes, when implementing a matrix structure, it may be difficult to gauge employee performance when working on a project. This is an ideal example of a matrix structure where authority is flowing vertically as well as horizontally. It might mean having two managers or "dotted-line" responsibility to a project manager as well as to the team manager. Conflict may arise because of the heterogeneity of team members. Matrix organization enables maximum utilization of scarce resources. Matrix organisation structure is the preferred structure for companies to adopt, to share knowledge and resources ,again improve communication which is the most critical element in project management. In a matrix management system, an individual has a primary report-to boss while also working for one or more managers, typically on projects. A matrix organization is one where functional leaders are responsible for more than one area. It helps to focus attention, talent and resources on single project individually which facilitates better planning and control. It leads to better utilization of services of professionals. Fewer people, more work. A matrix structure has its pros and cons. 3. Kinds of Organisation Charts: Organisation charts are broadly of the following types: 1. A matrix organisation is a two dimensional structure, a combination of pure project structure and the traditional functional departments (Fig. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. This structure has some advantages: 1. The concept of matrix organization was born in the United States, in the aeronautics sector, in the late 1950s. Matrix management is ideal for sharing talents and skills across departments. 7. Following the matrix structure, the employees are given more tasks instead of hiring new people. A balanced matrix still has time accountability issues for all the project team members since their functional managers will want reports on their time within the project.In this type of organization Matrix Organizational Structure Advantages and Disadvantages 4. A matrix organization is one where functional leaders are responsible for more than one area. A manager has to perform various functions as a … In addition to the vertical and functional outline, the project manager might manage their teams across different departments, generally outlined horizontally within the matrix. After providing a brief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. Content Guidelines 2. Functional structure is a permanent feature of the matrix organisation and retains authority for the overall operation of the functional units. Projects will always continue to come to an end, but project team members and managers may keep their functional roles throughout the project. Matrix organisation is used when an organisation has to handle a Variety of projects, ranging from small to large. It provides motivation to the project staff as they can focus directly on the completion of a particular project. It's an especially handy system when developing new products allowing individuals from all different functions to organize under a project manager to create something new and unique. Employees report to both their immediate manager and a cross function leader. 3. The matrix structure also allows for better interdepartmental communication and collaboration. For instance, the project manager might draw their team members from the administrative, human resources and marketing teams. Marketing people can learn about finance, Finance people can learn about marketing, etc. Project manager reports to functional manager 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. Expertise Knowledge. Demerits of Matrix Organization: 1. Expertise Knowledge. Functional departments create a vertical chain of command while the project team forms the horizontal lines, thereby forming a matrix. These matrix organizational structure advantages and disadvantages must get taken into consideration at the local level. The three structures listed in order of increasing influence and authority is the weak matrix, balanced matrix, and strong matrix. Content Filtrations 6. The company can use the existing workforce to get tasks done. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. It isn’t usually the best option for small business owners, partnerships, or sole proprietors, but it could be a viable solution for large companies that … Benefit of Specialization. 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. After reading this article you will learn about: 1. When planning projects within a matrix structure, you might consider methods to increase employee engagement and hold staff accountable for their work. Formal Organization – Matrix Organization The management of a company will build an organizational structure to help achieve the objectives of the company. Additionally, weekly or daily communication with employees can be necessary to clarify any questions or misunderstandings, as well as give actionable feedback to employees as they do their work. Its division is on the grounds of the type of product that is, consumer products, industrial products, and healthcare products. There is less overall downtime within the workplace. Resources are shared across both business-as-usual work and project work. Functional structure is a permanent feature of the matrix organisation and retains authority for the overall operation of the functional units. 1. These two or more managerial systems intersect on a grid or matrix. Consider having managers outline clear expectations of what each of their team members will be responsible for. Before publishing your articles on this site, please read the following pages: 1. Matrix organisation or grid organisation is a hybrid structure combining two complementary structures functional departmentation with pure project structure. The matrix organization structure is a balanced combination of several organizational structures to achieve higher efficiency in their dealings. A weak matrix organization is often the least supportive environment for project managers. The decision-making process can be slowed down. ... Matrix Project Organisation Weak matrix organization structure. Additionally, team members might have misconceptions about how they are expected to divide their time between their functional duties and their project responsibilities. It creates a vertical structure where every person within the organization, except one, is a subordinate to another single individual or entity. Development of Skills : It helps the employees to widen their skills. Ultimately, with careful planning, clear expectations and open, effective communication, the matrix organizational structure can be an advantageous method of organizing multiple roles and departments when undertaking a large-scale project. Related: Management Styles: Overview and Examples. The benefits or merits or advantages of a matrix organisation are:-Sound Decisions: In a Matrix Organisation, all decisions are taken by experts. Setting goals can help you gain both short- and long-term achievements. Additionally, this report examines best practices gleaned from the literature and from organizations that have successfully implemented and maintained such structures. There are several advantages to using the matrix organizational structure. It is inherently complex and flexible, making it more suited for large companies operating in different regions and industries. 1. Benefit of Specialization. Both structures provide a critical framework to a company's success, and it's important to identify the best one. Easily apply to jobs with an Indeed Resume, Active Listening Skills: Definition and Examples, Collaboration between different departments, Combines project and functional management structures, Team members and managers keep their functional roles. It provides motivation for the people engaged in a project . 6.17). The product-based organizational model also enables businesses to operate with more flexibility, as each business division can follow the unique processes they need for each product without having to accommodate processes for the other divisions.This can enable the company to shorten their development and manufacturing cycles and bring products to market faster to beat the competition. List of the Advantages of the Matrix Organizational Structure 1. The matrix structure offers organizations an effective system for managing projects. Merits of Matrix Organisation 3. Reply Fahad Usmani says: May 27, 2015 at 1:44 PM . 2. Image Guidelines 5. 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. If you choose to implement the matrix organizational structure, you might consider how to address key details as they arise when outlining manager and team roles. This system provides ample opportunities for minute specialization to its maximum extent. Additionally, you may consider addressing any employee misconceptions about what the project entails overall, as well as what tasks they may be responsible for. reaching higher productivity.It has various benefits. In this article, you will learn what the matrix organizational structure is, what roles it includes and the top advantages and disadvantages of using this template for organizing a project. Advantages of matrix organizational structures There are several benefits of implementing a matrix organizational structure within the workplace. Overlapping of responsibility is easily avoided. Meaning of Matrix Organisation 2. Drawing from different departments within the organization can allow an interdisciplinary team to view a complex project from a variety of different professional angles and work together to come up with dynamic solutions to different problems. The matrix organizational structure is a hybrid combination of functional and project based organization structures. Matrix. When a matrix organizational structure is implemented, then … Merits of functional organization: The following are the merits of functional organization. In the foregoing pages, an analysis of the features, merits and demerits of the different types of organisation has been made. There are several other key advantages as well: Perhaps the biggest advantage of a matrix structure is that is brings together highly skilled team members from different departments, allowing the organization to capitalize on the resources it already has rather than seeking expertise and recruiting project team members from outside of the organization. Each employee within the human resources department, for example, might report to the human resources department manager. 2) One advantage of a matrix is that staff can work on both business as usual activities and project work. 4. 6 key advantages of the matrix organization Here are the top six reasons (from the academic research and our own consulting experience) why companies introduce a matrix: To meet the needs of global or regional customers who want a consistent international agreement and point of contact. The matrix structure may oftentimes be adopted by companies that need to manage daily operations in conjunction with ongoing projects. There is no conflict among the employees since their respective duties and responsibilities are clearly defined. However, even if some projects may not be classified as large scale, they can still be incredibly complex. Therefore, a team of specialist from different areas is created for each project. The benefits or merits or advantages of a matrix organisation are:-Sound Decisions: In a Matrix Organisation, all decisions are taken by experts. Here the employees, your project team, are associated with functional managers that are responsible for their development and management. The merits of formal organization are briefly described below: 1. Concept of Matrix Organisation 2. What is active listening, why is it important and how can you improve this critical skill? Products and projects are formally coordinated acros… For instance, you might suggest the project manager outline due dates for specific milestones within the project scope. 3. Merits of Formal Organization. A project manager could also draw team members from all the organization’s departments for a single project. The sharing of resources across the business is an advantage of matrix organisation. Meaning of Project Organisation: The project organisation consists of a number of horizontal organisational units to complete projects of a long duration. The Another issue is when team members’ roles aren’t clearly defined in the project or the division of responsibilities between employees’ functional roles and project roles isn’t clear. These different aspects of a project can include a variety of activities and processes, from task allocation to budgeting. Horizontal organisation charts, 3. Matrix organisation or grid organisation is a hybrid structure combining two complementary structures functional departmentation with pure project structure. Similarly, the matrix organizational structure may include employees from across different departments to work collaboratively on projects. Working outside of a traditional or hierarchal structure can benefit employees by helping them develop new skill sets and gain valuable experience from working with different departments. Demerits. Each project is vitally important to the organisation. Resources can be used efficiently, since experts and equipment can be shared across projects. In the matrix structure, employees may report to two or more bosses depending on the situation or project. Project expeditor works only like communicator point between the customer and team. It results in the motivation of employees. Measuring employee performance might become difficult. Prohibited Content 3. This system provides ample opportunities for minute specialization to its maximum extent. It also notes the differences between the strong matrix and the weak matrix. A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. Matrix organizations enable better coordination, better horizontal and vertical dissemination of information. Additionally, team members may also participate in future projects. Following the matrix structure, the employees are given more tasks instead of hiring new people. It provides an environment in which professionals can test their competence and make maximum contributions. This gives the team the ability to draw upon diverse skill sets from multiple disciplines, which strengthens the overall project team. 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