There are several advantages of matrix organizational structure such as flexibility, proper utilization of resources, sense of team spirit etc. and some drawbacks such as possibility of conflict, expensive structure, complex chain of command etc.In this post we are going to discuss some of the major strengths (pros) and weakness (cons)of matrix organization.
Merits Or Advantages Of Matrix Organization
The main benefits or advantages of matrix organizational structure can be highlighted as follows:
1. Flexible And Dynamic
Matrix organization is more flexible and dynamic than other kinds of organizational structure. It can be easily adopted according to the need of the management. It can cope with the change in both internal and external environment.
2. Increased Motivation
It promotes democratic leadership and group decision making . So, it helps to motivate the members of the organization.
3. Efficient Employment Of Resources
Another advantage of matrix organization is that it promotes creativity and efficiency to obtain better result. So, available resources (both human and nonhuman resources) are efficiently utilized in this organizational structure.
4. Team Spirit
In this organization, members are highly qualified and specialists. It helps to share knowledge and skills among the employees. It creates sense of team spirit in the organization.
5. Reduce Burden
Authority and responsibilities are delegated to the project managers according to their capability and nature of work. It helps to reduce work load and burden of top authorities. Top level managers can give focus on other issues.
6. Better Supervision And Control
Because of decentralization of authority, it is easy to supervise, coordinate and control the subordinates.
Demerits Or Disadvantages Of Matrix Organization
The main drawbacks or disadvantages of matrix organization can be highlighted as follows:
1. Difficult To Manage
Matrix organization is very large and complex type of structure with dual management. So, it is very difficult to manage this type of organization.
2. Expensive Structure
There is a dual management in matrix structure. There are specialists and experts acting as project managers. Therefore, it requires huge cost to meet administrative and operating expenses.
3. Complex Chain Of Command
Complex chain of command is another notable disadvantage of matrix organization. Subordinates are responsible to two superiors (functional manager and project manager). Due to dual management, it may create confusion and complexity to the employees.
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4. Chance Of Failure
Because of complexity, high cost and complex chain of command, there exists a chance of failure of the project.
5. Conflict And Misunderstanding
Members are from different educational backgrounds and different fields. Because of this heterogeneity, there is a chance of conflict and misunderstanding between the members.