[Commerce Class Notes] on Formal Organisation Matrix Organisation Pdf for Exam

Matrix organisation or grid organisation is a kind of departmentation. It can apply to a company, a project or even product management. This departmentation is particularly helpful in achieving organisational objectives that a company sets forth. The formal matrix organisational structure consists of the job structure, hierarchy, flow of communication and employee relationship, etc. Matrix organisation is one such part of the overall formal structure. In the following article, details of matrix organization will be discussed vividly. 

What is a Matrix Organisation?

Matrix organisation is the combining of project or product patterns of departmentation and functional departmentation within the same organisational structure. In a matrix organisation, there is more than one line of reporting managers. In other words, there is more than one boss for the employees. Organisations that deal in a diverse array of products opt for this kind of a structure. 

What is a Matrix Structure?

The matrix structure is common in engineering and product marketing organisations. In a matrix structure, individuals who specialise in some particular fields work together in a team and also work individually in his own department at the same time. For example, if a company is developing a new product, the team entitled with the duty will consist of engineers, designers, finance experts and marketing analysts etc. This can be referred to as a matrix structure. 

Explain the Matrix Organizational Structure

As we explain the matrix organizational structure, we must also discuss the three other organisational structures namely functional, line and third and line and staff. However, the matrix structure is way more complex and resembles a matrix or a grid-like representation. Both project management and functional organisation have been combined to form a matrix structure. 

Matrix Organizational Structure Advantages and Disadvantages

There are a good number of matrix organizational structure advantages and disadvantages. In the following section, we will first describe the benefits of matrix management. These are:

• The benefits of matrix management are mostly enjoyed by the employees as they can gather dual support from the product manager and the functional manager both. Thus knowledge, effort, skill and work all are taken care of. 

• The available resources are more efficiently used when this structure is implemented. The resources are not stagnated either as they can be shared among the ongoing projects. This reduces the cost also. 

• The flow of information is smooth in all directions

• All the departments involved coordinate with each other and thus miscommunication does not occur.

• With more than one manager in place, the employees have to take decisions autonomously sharpening their decision-making skill.

• Both lateral coordination and specialization are encouraged.

There are Some Disadvantages of Matrix Organization as Well, These are:

• The structure is overtly complex; not all employees are comfortable working here.

• The dual authority may pose many problems in terms of complexity. Employees may often get confused about whom to approach as the higher authority.

• If any of the managers showcase ineffectiveness in management, miscommunication my follow

• It is more expensive than other organizational structures. 

• If there is a lack of communication between the managers or there is internal competition between them, conflicts are bound to occur leading to the failure of achieving organisational objectives.

In a nutshell, this is all about matrix structure along with matrix organization advantages and disadvantages. Though profitable, it has its complexities. In today’s world, the matrix structure is the most prominent one in the corporate sector. The involvement of two managers and their relationship with the employees pave the path for the achievement of the organizational goals.