Project team members may have divided loyalties because they have to report to two or more line mangers. Concept of Matrix Organisation: Matrix organisation is used when an organisation has to handle a Variety of projects, ranging from small to large. When there is a hierarchical organizational structure in place, teams tend to stay within their defined structures. This type of structure can have both advantages and disadvantages within the workplace. This may cause harm to the organization and the employees working for them. These disadvantages may not always persist in an organization. Matrix Organization: Conclusion. The matrix organizational structure is atypical because it brings. Research by Joachim Wolf and William G. Egelhoff shows that the likelihood of intra-organizational conflict in a matrix structure depends on the groups involved. In other words, the matrix organisation is a project organisation plus a functional organisation. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. For example, one manager may deliberately keep an employee busy in unimportant work to prevent him from working for the other manager. Both managers must be on the same page for it to be an effective structure. This structure can be thought of as a combination of the functional and projectized approaches we just mentioned. Collaboration within a team still happens. 2. It may cause a lack of collaboration. Functional managers and project managers may have grudges against each other. READ MORE on smallbusiness.chron.com. The disadvantages of horizontal organization include workforce reductions that create a loss of experienced managers, who often make up the “institutional memory” of a company; the breaking up of specialized lines of business, thus reducing the company’s ability to innovate; and uncertain career paths for aspiring managers. Matrix organizations enable better coordination, better horizontal and vertical dissemination of information. Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations. In a matrix … The disadvantages of matrix organization are as follows-The employees are working under multiple bosses, and sometimes situations arise where one boss is played against the other by an employee; Conflict arises as resources are pulled in several directions and this leads to ambiguity; Accountability becomes difficult because of shared responsibility ; There is a confusion about the … The famous matrix organization consists of cutting and then combining the functions of the company (research and development, marketing, sales, etc.) (a) Matrix Organizational Structure The matrix organisational structure is also called the mixed model. When a pure project structure is superimposed on a functional structure, the result is a matrix structure. Employees may have to report to two bosses, which can add confusion, and conflicts may arise, particularly in the balanced matrix environment where both bosses have equal authority and power. For instance, if a software architect needs to support a project for only 2 days, he can be assigned to other projects or activities for the remaining days of the week. A manager in a matrix organization has two or more upward reporting lines to bosses who each represent a different business dimension, such as product, region, customer, capability or function. READ MORE on bizfluent.com. Skills are better utilized under a matrix structure, so companies can select the most capable employees in order to deliver projects. It may be slightly difficult for all the employees to fully understand and integrate themselves into this structure. One of the biggest pros of using a matrix organizational structure is that it allows the sharing of highly skilled resources between functional units and projects. Collaborating outside of a team silo can be difficult to accomplish. There are advantages and disadvantages that need to be understood to know if it’s the right one for the organization. with the divisions (products, geographical areas, customers) and projects. References. Advantages And Disadvantages Of A Matrix Organization 1170 Words | 5 Pages. Pros. Difficult To Manage. And, just as the name implies, the matrix organisational structure has a mix or confluence of different employees, from the same organisation, who work together, but only temporarily. Project Organisation: Definition, Merits and Limitations. Matrix Organization: Matrix Organizations are organizations with structures that carries a blend of the characteristics of functional and projectized organizations. Limitations. But it also involves much complexity and demands much communication so that all organizational managers--particularly the project and the functional--can effectively and efficiently work together. 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