One of the defining characteristics of a matrix organizational structure is that it:

The hierarchical framework of the matrix may provide scalable forms for companies to operate on projects, but due to the various elements of the project, it may be difficult to execute initially. In this article, you will discover what the organizational structure of the matrix is, the pros and cons of the organization of the matrix.

What is Matrix Organization?

Matrix organization, a system characterized by a type of management with several chains of control. Unlike the conventional hierarchy in which each worker has one superior, the matrix structure allows workers to report to two or three supervisors, each responsible for a separate part of the overall product or service of the company.

Matrix Organizational Structure is a group structure in which monitoring relationships are defined as a grid or matrix rather than in the conventional hierarchy.

In the 1970s, Philips, the Dutch Multinational Electronics Corporation, set up matrix management with managers reporting to both the Geographical Manager and the Active Division Manager.

Pros of Matrix Organization?

One of the main pros of utilizing the hierarchical form of the matrix is that it enables the exchange of highly qualified personnel between functional units and projects. Relations are available, which lets information travel through the enterprise with less obstruction. Since the hierarchical form of the matrix facilitates better communication.

In the organizational structure of the matrix, workers have even greater control and insight into initiatives. This style of arrangement promotes employee contributions and sets a greater emphasis on the employees' point of view. Employees operate through various initiatives and with separate divisions within the company. This improves the interaction between workers and encourages a greater understanding of teamwork.

A matrix layout helps workers to work through a wide range of projects which also enables them to use and/or develop new skills. Being exposed to different tasks and responsibilities can improve the development of employees and enhance their professional skills.

Cons of Matrix Organization?

There may be some confusion where a team member is subject to two bosses. This can also lead to needless tension. This is particularly true as all managers share the same authority.

Then there's the functional boss and the project manager. There may be some sparks flying between these two bosses in terms of what they consider to be the authority in the organization. This uncertainty can also occur for team members where their duties and obligations are not well defined. And the uncertainty will lead to confrontation if the resources are difficult to locate and opposing managers compete over them.

Matrix companies are commonly considered to have more managers than necessary, increasing overhead costs. The workload in a matrix company appears to be heavy. Employees tend to work on a routine basis along with extra project-related work. This might fatigue them. Employees can neglect their daily duties if they are overtaxed.

The arrangement of the matrix is expensive to manage. Organizations need to invest more to maintain staff, since all resources are not busy at all times, and others are needed only for a short period.

Strong Vs Weak Matrix?

The project manager has the power and a full-time job in strong matrix organizations. They will be reported by a full-time project management team and they will oversee the budget. This arrangement has the features of a projected organization. The functional manager has a small role to play in a strong matrix company.

Project managers had little control in weak matrix organizations. Their position is part-time and they are not informed by administrative staff. Their job is like a planner or an expeditor. Here, the project budget is managed by the functional boss. The weak organizational structure of the matrix is identical to the functional organizational structure.

Summary

Nothing is flawless in industry, and all corporate processes require trade-offs. If you apply a matrix to your business, start small, practice, and fine-tune as you advance. Leaders and administrators should ensure that all staff recognizes whom they are answering and the roles for which they are accountable. The hierarchical framework of the matrix aims to incorporate the best of all worlds: the power-sharing between the project and the functional boss varies according to the matrix.

This ends this article on the organizational structure of the matrix. If you have something to share with us, please do so in the comments section below.

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