Some of the advantages and disadvantages of a matrix organizational structure are as follows. Also, you can check out the advantages and disadvantages of organizational structure to know more about it.
Pros or advantages of matrix organizational structure:
- It enhances organizational flexibility.
- It is a clear articulation of project objectives.
- Team members have the opportunity to learn new skills.
- it will increase communication efficiency.
- It will improve employees motivation.
- Employees can develop new skills.
- It will collaboration between different departments.
- It provides an efficient way for the organization to use its human resources.
- Team member serves as a bridge to their department.
- It will increased employee professional development.
- It will allow for interdepartmental communication.
- There are opportunities for employees growth.
- There are opportunities to save money.
- Possibility of conflicts arising during project carrying over to functional management.
- Retention of expert teams through the life of the project.
- Workable way of integrating project objectives with functional objectives.
- Project management train managers to become leaders of the successful company.
- The project structure develops team spirit and high morale.
- There are fewer areas of organizational disruption over time.
- Rapid dispersion of team members back into the functional organization upon project completion without organization disruption.
Cons or disadvantages of matrix organizational structure:
- Employees are uncertain about reporting relationships.
- The dynamics of group behaviour may lead to slower decision making. Dominance by one person, compromise decision or its loss focus.
- More time may be required for coordination task-related activities.
- Reduce employees effectiveness.
- Team roles may not be clearly defined.
- Sometimes work will be overload.
- Difficult for measuring employees performance.
- Possible structure collapse in crunch time.
- Increase in management overhead costs.
- There may be uncertainty as to who is in command.
- Difficult for establishing priorities suiting both functional and project management.
- It will increase organizational complexity.
- There are still resources allocations issues.
- Potential for conflicting management directives.
- Sometimes decision-making proceeds can be slow down.
- There can be goal misalignment within the workplace.
- Possible slowdowns in management reaction to events when two strictures required for solutions.
- Two problem managers, leaving the team members stuck in the middle.
- There can be a loss of middle authority.
- There can be a snowball effect.