Matrix Organizational Structure

Every organization needs a structure to carry on the functions of a company properly. This aims at bringing order in a world of chaos and give the organizational culture a structured feel so that effective functioning becomes possible. An organizational structure means that any organization needs a pattern of hierarchy so that there is proper distribution of functions and duties and the different units can work in unison towards a final goal. And it is this need that has been responsible for the formation of several types of organizational structures in companies. In the following article though, we shall focus on the matrix organizational structure.

Definition

A matrix organizational structure combines two types of organizational structures namely the product organizational structure and the pure functional structure to create a unique blend of work environment. This structure and design is most useful for when the assignments are project driven because in this, several professionals with distinct functioning powers will be hired to carry forth the functions. To give an example of this form of structure - several engineers might be hired to carry forth a similar function by pooling in their expertise. In the sense, a single company producing two types of products with the same team of professionals.

Typically, this structure will have two or more bosses and the people working on the project will have to report to each of them. Therefore in this form of structure, information sharing becomes mandatory for effective and smooth functioning. Each project will have a project manager and the different teams are expected to report to him with their work. He in turn reports directly to the head of the organization or the suggested authority like the vice president. There is also the functional department (headed by the department manager) that is responsible for maintaining the technical functionality of an organization by making sure that the proper technical base is maintained and excellence is provided through the work and the organizational leadership skills.

Advantages

Due to the unique makeup of this structure, there are several advantages that are seen. Here are some of these:

• A specialized crew can be chosen on the merits of their work and the functions that they carry forth.
• The needs of the project is the sole criteria for hiring of professionals. Thus allowing for more chances of success.
• Since the key people that are hired as a part of one team also work under other teams, it becomes a cost-effective affair because the project cost is minimized.
• The structure is no well-balanced that there is a proper balance between cost, time and the performance.
• Less conflicts are likely to take place and even if they do, they are easily solved because of the hierarchical setup.
• The project manager is solely responsible for making sure that the project is completed on time and within the allotted budget. Therefore other than the obvious problems that do arise, there is less chance of external factors affecting the project.
• There is more chance of success because a lot of different thinking forces are working on the project and therefore the stress, authority and problem solving abilities become stronger.

Disadvantages

Even though there are advantages of a matrix organizational structure, there are certain disadvantages that one should be aware of as well. Here are some of them:

• There can be a lot of confusion and conflict if there is confusion over factors like the sharing of resources by two teams or the team which is working in two departments.
• The cost could be increased if there are a lot of project managers hired for the job.
• Since the basic functioning goes such that there is a lot of independence and decision power placed on the team members or even the project manager, then there are chances of there being a delay in the project getting completed.

And that's all there is to the definition and the advantages and disadvantages of this form and type of organizational structure. Many organizations find this structure highly advantageous for their working style and for effective functioning.