MGTP102 Essay: Evaluating the Matrix Structure for Organizations

This essay, written for a Management Principles course (MGTP102), provides an in-depth analysis of the matrix organizational structure. It examines the core principles of the matrix structure, including dual reporting relationships and its grid-like design. The essay delves into the advantages, such as improved information exchange, enhanced employee support, democratic leadership, team concept boosting, and efficient resource utilization. It also critically assesses the disadvantages, including increased internal complexity and potential for conflict. The essay argues that while the matrix structure presents challenges, its benefits often outweigh the drawbacks, making it a suitable organizational model in many contexts, particularly for companies with diverse product lines or services. The analysis is supported by references to relevant academic sources.

Management Principle

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“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).

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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).

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Matrix Organization Structure encourages democratic leadership style that incorporates the input
of project team members. As the employee of the company performs the two functions sue to
which the accountability is increases. It is a fact that the employees are getting motivated while
the top management gives more responsibility to employee on their trust. The capability or
ability of the employees are also enhances to perform the activities as they handle all the
activities. This advantage defines the suitability of the matrix structure as it enhances the overall
performance of the organization.
Matrix organization structure helps to boost the team concept. According to the matrix
organization structure, the employees work on different projects and communicate with each
other even in the different departments or division. As the employees communicate with each
other or even in the different department due to which the chances of quality of work is
improved. The employees help each other in the different situation with the different ideas and
perspective. The new ideas and opinion of different people increasing the creative and innovation
in the organization that helps to enhance the quality of the work. In an organization, there are
different types of people works together with the different way that helps to enhance the
creativity in the work. As the employees help each other due to which the concept of team is
boasted. It is observed that the spirit of teamwork is enhance as the employee work together and
helps to each other (Toppr, 2019).
In a matrix organization structure, there is a better and more efficient use of resources. Resources
can be shared across projects by reducing the cost and increasing the efficiency. In the matrix
organization structure, employees share their information from each other from top to bottom
and also in cross connection. The people share the information can also share the resources of the
company so that the budget of the company will remain maintain. This structure utilizes the

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resources effectively in a proper manner due to which not only financial budget is maintained but
also improve the quality of the company. More utilization of resources of the company enhances
the productivity and stability in the market. The performance of organization is improved that is
major factor for the company. This beneficial factor indicates that the matrix organization
structure is suitable for the organization as it enhance the performance of the business (Egelhoff,
and Wolf, 2017).
It has been seen that the matrix organizational structure increasing the internal complexity. The
employee faces the internal challenges as they are confused to get the right decision. According
to the matrix organizational structure, employees perform the two functions in the organization
due to which they get confused to perform their activities. It has been seen that this organization
structure enhances the productivity but it affects the quality of work. It is observed that the
employees get confused in their functions and responsibilities due to which the quality of work is
affected. It has been seen that the chances of conflict is also increasing as the employees have to
perform the two or more activities. The employees have to follow the rules of their seniors and
according to the matrix organization structure; members perform two or more activities due to
which they give orders to their employees to perform the activities. It is observed that two or
more senior have their different point of view due to which the employees get confused to follow
one leader due to which the chances of conflict is increasing (Browning, 2015).
From the above analysis, it has been found that the matrix organization structure has a positive
and negative aspect that affects the company. It has been seen that there are some disadvantages
that affects the business and indicates that the matrix organization structure is suitable for the
company. The structure increasing the conflicts and confusion among employees due to which
the risk of productivity and quality of work is affected. But it has been analyzed that there are

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many advantages of matrix organization structure that helps to improve the business process,
productivity, quality and the others. As there are advantages and disadvantages of the matrix
organization structure that is why; it can be said that the matrix structure is suitable for the
organization in many areas and it affected the business in some areas. It is observed that this
structure has more advantages as compare to disadvantages. The matrix organization structure
helps to improve the performance and position in the market which is the main motive of the
company. It can be said that the matrix organization structure is suitable for the company.

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References
Albers, S., Wohlgezogen, F. and Zajac, E.J. (2016) Strategic alliance structures: An organization
design perspective. Journal of Management, 42(3), pp.582-614.
Browning, T.R. (2015) Design structure matrix extensions and innovations: a survey and new
opportunities. IEEE Transactions on Engineering Management, 63(1), pp.27-52.
Burton, R., Obel, B. and Haakonsson, D. (2015) How to get the matrix organization to work.
Journal of Organization Design JOD, 4(3), pp.37-45.
Egelhoff, W.G. and Wolf, J. (2017) How a Flexible Matrix Structure Supports a More
Ambidextrous Organization. In Understanding Matrix Structures and their Alternatives (pp. 161-
180). Palgrave Macmillan, London.
Galbraith, J.R. (2018) Information processing determinants of organization. Information Systems
and Organizational Structure, p.105.
Módis, L. (2018) Organization of the extracellular matrix: a polarization microscopic approach.
CRC Press.
The Economic Times. (2018) Definition of 'Matrix Organization'. [online] Available From:
https://economictimes.indiatimes.com/definition/matrix-organization [Accessed 19/12/19].
Tolbert, P.S. and Hall, R.H. (2015) Organizations: Structures, processes and outcomes.
Routledge.
Toppr. (2019) Formal Organization – Matrix Organization. [online] Available From:
https://www.toppr.com/guides/business-management-and-entrepreneurship/organizing/formal-
organization-matrix-organization/ [Accessed 19/12/19].