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Matrix Organizational Structure

The matrix structure groups employees by both function and product to combine strengths of separate structures. It organizes functions like sales, customer service, and accounting for each product. There are three types of matrix structures: weak/functional (limited project manager authority), balanced/functional (equal power sharing between project and functional managers), and strong/project (project manager primarily responsible). The matrix structure improves on functional silos by creating more horizontal information sharing across tasks. It allows specialization to increase knowledge depth and matches individuals to project needs, maximizing strengths and minimizing weaknesses. However, it also increases complexity in reporting structures and can create employee conflicts between functional and project managers.

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198 views2 pages

Matrix Organizational Structure

The matrix structure groups employees by both function and product to combine strengths of separate structures. It organizes functions like sales, customer service, and accounting for each product. There are three types of matrix structures: weak/functional (limited project manager authority), balanced/functional (equal power sharing between project and functional managers), and strong/project (project manager primarily responsible). The matrix structure improves on functional silos by creating more horizontal information sharing across tasks. It allows specialization to increase knowledge depth and matches individuals to project needs, maximizing strengths and minimizing weaknesses. However, it also increases complexity in reporting structures and can create employee conflicts between functional and project managers.

Uploaded by

Shady El Hussieny
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Matrix structure

The matrix structure groups employees by both function and product. This structure can combine the best of
both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order
to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized
forms. An example would be a company that produces two products, "product a" and "product b". Using the
matrix structure, this company would organize functions within the company as follows: "product a" sales
department, "product a" customer service department, "product a" accounting, "product b" sales department,
"product b" customer service department, "product b" accounting department.

 Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross-
functional aspects of the project. The functional managers maintain control over their resources and project
areas.
 Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared
equally between the project manager and the functional managers. It brings the best aspects of functional
and projectized organizations. However, this is the most difficult system to maintain as the sharing of power
is a delicate proposition.
 Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers
provide technical expertise and assign resources as needed.

Matrix structure is only one of the three major structures. The other two are Functional and Project structure.
Matrix management is more dynamic than functional management in that it is a combination of all the other
structures and allows team members to share information more readily across task boundaries. It also allows for
specialization that can increase depth of knowledge in a specific sector or segment.
There are both advantages and disadvantages of the matrix structure; some of the disadvantages are an
increase in the complexity of the chain of command. This occurs because of the differentiation between
functional managers and project managers, which can be confusing for employees to understand who is next in
the chain of command. An additional disadvantage of the matrix structure is higher manager to worker ratio that
results in conflicting loyalties of employees. However the matrix structure also has significant advantages that
make it valuable for companies to use. The matrix structure improves upon the “silo” critique of functional
management in that it diminishes the vertical structure of functional and creates a more horizontal structure
which allows the spread of information across task boundaries to happen much quicker. Moreover, matrix
structure allows for specialization that can increase depth of knowledge & allows individuals to be chosen
according to project needs. This correlation between individuals and project needs is what produces the concept
of maximizing strengths and minimizing weaknesses

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