Matrix organization is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss.
The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. reaching higher productivity. It has various benefits. This type of structure is used in organisations which have diverse product lines and services.
Advantages of Matrix Organization
- Double Advantage: It offers an amalgamation of functional divisions and purpose divisions, along with technical expertise and focus on the organizational objectives.
- Improve Arrangement and Control: It helps in ensuring improved arrangement and control as the resource of the firm are mainly allocated on particular projects.
- Adaptable to Environmental Changes: It is one of the most suitable structures which immediately responds to the needs of the changing external environment and provides the best guidance for framing rules and procedures.
- Flexible Approach: It has a very flexible approach in relation to the observance of procedures, rules, etc. Experience acts as the best teacher for framing rules and procedures n this organizational structure.
- Best Source of Inspiration: it is a great source of motivation as all the units and sections together have to put the effort for successful completion of a project.
- Chances for Growth and Development of Employees: It presents a better organizational structure for growth and development of capable managers who otherwise have limited functional expertise.
- Multifaceted Relationships: Since in a matrix organization, the principle of “unity of command” is not followed, therefore usually personnel are accountable to many superiors, This leads to a state of chaos where juniors fail to recognise their immediate superior.
- Struggle for Authority: There are serious chances of struggle for authority among different executives of functional departments and projects executives. The situation may raise the chances of delayed accomplishment of the projects.
- Extreme Stress on Joint Decision-Making: With respect to issues like sharing of business resources, a matrix organization needs group decision-making. In case, the tendency to adjust and accommodate is found missing, decision-making would be delayed. Moreover, too much expertise and specialization may lead to chaotic decisions.