That places the future of customers, your talent, and your organization on the line. Advantages of matrix structure are: - 1. © 2020 Parallel Project Training - APM Project Management Training VAT Registration Number 978977812PMP, PMI, PMBOK® Guide, are registered trademarks of Project Management Institute, Inc.PRINCE2® is a registered tradeword of Axelos Ltd. a)    List and describe three advantages of a matrix organisation structure when used in a project environment. This sort of arrangement has both advantages and disadvantages. The Functional Manager would need to work with the Project Manager to identify these people. Disadvantages of the Matrix Organizational Structure. 3. In a hierarchal structure, the company might decide to hire three employees to cover these issues – one for each department. More importantly, it may be difficult to know who has the final say on decisions which need to be made. This sometimes can cause conflict if they are asked to carry out tasks from both areas. If you pull in resources from another department to work on a project, there will be workers who feel like they’re being told they are incompetent. The matrix structure offers organizations an effective system for managing projects. And are there more advantages than disadvantages when managing projects under such organizational structures? 2. One of the advantages of implementing the matrix organizational structure in a business is that it can lead to an efficient exchange of information. 2. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. Many managers need to work together, on teams of their own, to ensure that workers are completing their work assignments as expected. Each one provides a small contribution to the customer service experience. The matrix organization. ", 23 Ontario Wine Industry Statistics and Trends, Tesla SWOT Analysis (2021): 33 Biggest Strengths and Weaknesses, 14 Core Values of Amazon: Its Mission and Vision Statement, Is AliExpress Legit and Safe: 15 Tips for Buyers, How Does Zoom Make Money: Business Model Explained, A Look at Southwest Airlines Mission Statement: 10 Key Takeaways, Apple’s Mission Statement and Vision Statement Explained, How Does WhatsApp Make Money: Business Model & Revenue Explained, How Does Discord Make Money: Explanation of Business Model, Is Mercari Legit and Safe: 15 Tips for Buyers and Sellers, NEO PI-R Explained: Neuroticism vs Extraversion vs Openness vs Agreeableness vs Conscientiousness. The matrix structure offers organizations an effective system for managing projects. If the IT department shares its personnel, the company doesn't have to add employees to complete the projects. It is often used when the firm has to be highly responsive to a rapidly changing external environment. Equipment is shared for projects; hence, resources are utilized to their maximum capacity. In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Employees in the matrix organizational structure are typically accountable to more than one direct supervisor. They also create uncertainty within the workplace, as workers may not know who needs to receive information about the work they’ve done. This sort of arrangement has both advantages and disadvantages. Jan was an excellent trainer throughout and the course was really good. A matrix organizational structure is one of the most complicated reporting structures a company can implement. A matrix structure may not be well suited for businesses working in a more settled environment, with set customer requirements. Home » Pros and Cons » 15 Matrix Organizational Structure Advantages and Disadvantages. 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