Matrix Organizational Structure: Advantages and Disadvantages

Management
Principle

MANAGEMENT 1
“The matrix structure is suitable for all organizations”
Organization structure is a system that outlines how certain activities that are directed in order to
attain the organization goals. The structure is design on the basis of activities such as rules, roles
and responsibilities. The organizational structure helps to examine the information flow between
levels within the company (Tolbert, and Hall, 2015). There are three types of organizational
structure such as functional organization, projected organization and matrix organization.
Organizational structure helps the organization to enhance the performance of employees and
increasing the productivity. These three types of organizational structure help the organization in
different ways that is beneficial for the company. In this paper, the discussion is made on the
topic of matrix organizational structure.
Matrix Structure is one of the organizational structures that are designed by the top management.
In this organizational structure, the relationships are setup as a grid, or matrix rather than in the
traditional hierarchy. In the other word, that the employees have dual reporting relationships for
example – an employee plays the role as the functional manager and product manager (The
Economic Times, 2018). This example states that a person handles the functional activities and
the other is a more traditional project manager. The roles are fluid it means and also not fixed as
the balance of power between these two kinds of manager is not originally defined. It is difficult
for the organization to design the matrix structure but it helps to achieve the ultimate goals such
as reaching higher productivity. Matrix organization structure helps the organization to improve
the productivity as it has various benefits. The companies those have diverse product line and
services follows this type of organizational structure (Burton, Obel, and Haakonsson, 2015).

MANAGEMENT 2
It has been seen that the matrix structure is considered as the beneficial for the company as it
helps in many areas. Efficient information exchange is the major advantage of this structure as
the people can easily communicate with each other more frequently and can do their work more
closely to get issues resolved. There are effective lines of communications that exist in the firm
that is design to take the quick decisions. According to this organization structure, it has been
found that the communication is improved at the workplace. Matrix structure allows for greater
communication not only for top down but also across the department and divisions. Employees
can exchange their information with the top management and also for the different departments
due to which the operations and procedure of operating the business is improved (Galbrait,,
2018). Exchanging the information with each other allow the managers to respond quickly to the
needs of employees, customers and also more focuses towards the business goal of the company.
Employees enjoy the benefit of matrix structure as they get the dual support from its managers.
The managers can also plays the different role in an organization due to which they informs the
employees in many areas such as functional manager of the company can helps the employee in
enhancing their knowledge and skills and product manager can give the direction to employee
for the work and efforts. It is beneficial for the employees as they learn the new things from the
two managers instead of one manger (Albers, Wohlgezogen, and Zajac, 2016). The chances of
mistakes are also reduces as the two mangers work with the employees. If one manager forget to
share any information with the employees then the other manager has the authority to share the
information with the employees due to which the chances of mistakes is reduces. In this manner,
it can be said that the matrix organization structure is suitable for the organization in terms of
reducing mistakes, and sharing quick information (Módis, 2018).