In other words a project organization is superimposed on the conventional functional hierarchical organization. Matrix organizational structure advantages and disadvantages Matrix structure mainly encompasses functional and project structures. Lopsided management lines occur when one oversees many more direct reports than others. This contributes valuable information that leads to employee satisfaction and increased motivation. It seems natural that during periods of crisis, top management thinks that the organization needs a firmer hand and reinstitutes the authoritarian structure.
The networking company can employ few workers, while enjoying the reach, capacity and functionality of a larger business. Assuming you were given a question like this: A construction company which undertakes building projects as and when they are contracted to is looking to hire a consultant to help them develop an organizational structure. The project manager therefore must get involved and influence every project action and as a last resort he always has appeal rights or veto power — for the good of the project. Let us know in the comments. On the other hand, the functional structure also has four main disadvantages. The matrix organization structure is a blend of the projectized organization and the functional organization, and tries to blend the best of both worlds. Nevertheless some general principles can be found: -While in the conventional organisation forms just one criterion is selected and used for the structure on a certain level, it is typical for the matrix organisation that simultaneously and with equal rights two or more structure features are taken into consideration.
So, join us today and take a step ahead towards bright project management career! Increases difficulty of bring back into firm activities that now add value due to market shifts 4. This results in a vertical, hierarchical structure. What are the advantages and disadvantages of the five structures? Simple matrix organization The matrix in its simplest form is shown diagramatically in figure 2, indicating how the matrix received its name. If there is someone in sales with marketing experience and the marketing department needs help, then that person can be pulled. Many of these projects brought on board large volumes of information necessitating rapid integration of technical skills while retaining high productivity and efficiency.
More management positions typically lead to longer wait times for major decisions. The discipline in the flat organisation may be bad due to lose control. Another way of stating the roles is: the project manager is responsible for the overall integration of the total project system and the functional manager is responsible for technical direction in his discipline. The need was for an organizational form capable of managing the recent very large and very complex programs, projects, and problems, and for managing limited resources. However, there are usually some employees who relate so strongly to the overall project, that they perceive the project manager to be the real boss. The matrix structure replaces formal lines of authority with cross matrix structures or dual dimensions.
King, Management: A Systems Approach. As the name matrix suggests, this structure is a of a couple or more organization structures. That places the future of customers, your talent, and your organization on the line. People may lose sight of the larger picture. Whatever the cause, you can get stuck with resources who are less skilled or less experienced than you had hoped for and you have to deal with that. There are fewer power definitions used within the company. Coordination across functional lines can easily be achieved.
Disadvantages are that as the company grows, there may be a lack of integration across the different functions or departments leading to inefficiencies. In this structure, most team members have two bosses: one a functional or geographic manager and the other a product or business line manager. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. If you think about it, many project managers and sponsors work on a dotted line basis, where you might be on behalf of a sponsor who is not your direct boss. Communication also flows from team to two bosses. Advantages and disadvantages of a product division structure In this kind of structure, different divisions are made to handle different products.
They include a functional structure, multidivisional structure or a matrix structure. It has been attempted to clearly delineate the authority and responsibilities of both project and functional management so as to assure a balance of power. Here, the functional manager controls the project budget. Organisational structure refers to the way that tasks and responsibilities are allocated to individuals and the ways that individuals are grouped together into offices, departments, and divisions. A matrix organisation structure is one where there are multiple cross-functional, cross-business unit groups. Both managers should get the required power and authority.
They are effective at knowledge management because they allow separate areas of knowledge to be integrated across organisation boundaries. This can lead to problems and disadvantages of the matrix structure. They indicate that many of these difficulties occur in more conventional organizations, but that the matrix seems somewhat more vulnerable to these particular ailments. There is no evidence to indicate that multiple authority and role conflict lead to ineffectiveness 16. The collegial model: Advantages-independent functioning, independent decision making, each person is equal in responsibility, each generates own income, total flexibility. For instance, construction management has found from experience that a strong project office is often necessary to achieve good project performance 3. King, Systems Analysis and Project Management, Second Edition.
These days, most large manufacturing organizations have a functional structure. Conflict, particularly the role conflict typical of the two-boss situation, can produce stress, anxiety, and reduced job satisfaction. Inhibits common vision through reliance on outsiders 2. The structure serves to attain a balance by compensating various cons identified to realize an efficient operational system. .