Matrix organisation structure procedures a dual chain of command. Functional and project managers both exercise authority over organisational activities in a matrix structure. Strength of the matrix lies in the ability to facilitate coordination while the organisation has a multiplicity of complex and inter dependent activities. The direct and frequent contacts among various specialities in a matrix make for better communication and greater flexibility. Information permeates an organisation and faster reaches those people who require taking account of it.
Figure: A Matrix Organisation
Matrix also facilitates capable allocation of specialists. While individuals along with highly specialised skills are lodged within one functional department or product group, their talents are monopolized & under-utilised. The matrix achieves the benefits of economies of scale through providing the organisation along with the best resources and an effectual way of ensuring their efficient development.
Table: Advantages and Disadvantages of a Matrix Organisation
1. This structure has considerable flexibility. The personnel could be transferred form one project to the other depending upon the required of the project.
2. The lower level functional employees are highly motivated and satisfied along with their job, as they are included in decision making.
3. Promotes making trade off decisions on the primary of what is the best for the organisation as a whole.
4. Encourages cooperation, consensus building, conflict resolution & coordination of assiciated activities.
5. Creates efficient use of functional expertise.
1. It is extremely complex to manage.
2. The authority is so much shared which it could result in misappropriated amounts of time being spent on communications.
3. This structure violates unity of command.
4. Needs too much time for meetings and collaboration.
5. It is hard to move fast and decisively without getting clearance from several other people.