Monday, 18 April 2022

What are the advantages and disadvantages of a matrix organization?

 When a business starts a project, it can be very crucial for the business to have a good organizational structure in place to define all the aspects of the project. A project has different aspects; it includes a variety of activities and processes from allocating tasks to budgeting. In this situation, organizations adopt the matrix structure. The matrix structure combines the traditional department seen in functional structure with the project teams as well. Further, the matrix structure is a combination of both traditional hierarchies of management, where employees are not only by the team leaders but also by functional managers. 

In the matrix structure, the teams can be temporary or permanent that is depending on the tasks they are asked to complete. For example in a matrix organization, employees of the matrix organization generally reported to them both a product or project manager, as well as a functional manager like several departments, heads HR department, marketing department, financial department, and many more. Employee bosses can be changed for different projects. 

Advantages and disadvantages of matrix structure 

There are several benefits of the matrix structure. One of the important benefits of the matrix structure is that it provides an opportunity for cross-collaboration between staff and departments that may not be seen usually. There are several other key advantages which are listed below. 

Better coordination and control 

This structure is very much suitable to coordinate and control the functional activities and projects activities. The project leader has got the responsibility to establish a good coordination system in the organization. Project leaders allow subordinates to establish good bonds among colleagues and work together. It is the way that can help to understand each other strengths and weaknesses. Functional authority flows downward and departmental flows are horizontal which enables to establish better coordination and control among team members.

Adopting dynamic environment

In the matrix organization, it is the combination of two different management strategies that will help to adopt the dynamic environment of the organization. It is a hybrid type of structure that can easily adjust to changes in the business world. The project managers have freedom of functional work and they get all the urgent feedback information regarding the project quickly that making it easy to work. Along with project mange, employees are very professional in their work and belong to different functional areas so adjustment does not become problematic for them.

Effective use of resources 

Project structure makes very much effective use of resources available. The whole staff and project manager are specialists in various areas that experience help to maximum utilization of resources. They know better how to utilize project capacity and time, and how to use human and financial resources in a better way. 

Effective decision making

In This type of organization, people work on the project as a team. They are allowed to take participate in decision-making and problem-solving activities. They make all efforts for the betterment of the project and have the authority to know about day-to-day activities. They frequently do meetings and share ideas and thoughts for projects. 

Development of teamwork

The matrix organization facilitates team work and itself is teamwork. Employees from various departments work together in the spirit of a team and complete projects successfully. It gives opportunity to employees to learn from each other skills and make a great team for the organization. 

Disadvantages of the matrix structures

Matrix structure is like any other structure, it cannot away from challenges. There are several challenges upfront when implementing the matrix structure that is highlighted below. 

Lack of clarity

They are commands from two different superior functional and departmental that became problematic for employees to understand duties and their role in the project. They may not be permanent for one project and their duties change with projects. This is the reason for creating ambiguity in their role in projects. 

Costly structure

Matrix organization structure involves huge overhead expenses. There are very much paperwork and information collection that involves heavy costs. Most employees are also specialists and they charge heavy remuneration and facilities as well. 

The conflict between the functional and project manager 

There will be two types of specialists functional and project managers. They have several conflicts goals or priorities, and those conflicts can be the reason trickles down to team dynamic. Conflicts will affect the performance of the team and create uncertainties also among the team members. Sometimes they have different opinions and priorities that make confusion in teams. It is very difficult to balance these two types of experts like project authority and functional authority. 

Problem of overspecialization 

Organization structure creates the problem of overspecialization in some situations, specialists from both functional projects works gather to show many complex problems of the organization. For example, when experts are gathering to solve problems they waste valuable time in supporting their ideas, and sometimes problems remain unsolved.


Lack of commitment     


In a matrix organization, there will be a lack of commitment among the employees toward the project. No one will be responsible and loyal to the completion of the project. Due to the lack of commitment project completion delays, project cost increase, Useless, and until the project is completed. They will get a good amount with salary and benefits, this also decreases their commitment. 


The matrix structure provides a new system that can address better the complexities of large projects. I hope this information helps full to know about the matrix structure and how to implement it effectively in their business.     




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