The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. The freedom to collaborate, rather than being isolated in separate departments, may be the strongest benefit in the list of advantages and disadvantages of matrix organizational structure. After providing a brief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. Matrix organization is more than a matrix structure. This type of organization has a complex structure. In addition, the faster flow of information can speed up decision-making. Matrix organization for a small and large business: An outline, advantages, disadvantages, conclusion. Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). A matrix structure allows effective and efficient communication, thus making it advantageous for organizations that depend on knowledge or information sharing. They do still have their Line Manager from their Functional Department. By working in a matrix organisation the resources are only seconded to the project for limited amount of time. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. The matrix structure diagram is one of the most commonly used reporting structures that a company can implement to emphasize efficiency, creativity, and innovation. Disadvantages. The matrix structure has the following advantages: i. Read on to learn what is a matrix structure diagram, matrix structure diagram examples, and the advantages and disadvantages for both company and staff. A disadvantage of the matrix structure is the increased complexity in the chain of command when employees are assigned to both functional and project managers. There is a dual authority in a matrix organization. Matrix structures can help provide both flexibility and balanced decision making, but at the price of complexity. It promotes development of managers through … All of the following are disadvantages of a matrix structure EXCEPT: a) it is difficult to explain to employees. iii. d) it is very expensive. The Matrix Organization Structure can deliver this, provided people have the skills to make the matrix work. It may be slightly difficult for all the employees to fully understand and integrate themselves into this structure. Line management conflict can be a disadvantage of a matrix organisation. b) authority and responsibilities of managers may overlap, causing conflicts and gaps in effort across units and inconsistencies in priorities. Disadvantages of a Matrix Structure. This is mainly applied in large projects or product development processes, and hiring employees from different disciplines.. Businesses weighing the matrix organizational structure pros and cons usually find at least occasional value in using a matrix. c) unity of command is lost. Matrix structures also allow for specialization that can both increase depth of knowledge and assign individuals according to project needs. The Cons: Disadvantages and Limitations of Matrix … This sometimes can cause conflict if they are asked to carry out tasks from both areas. An employee may find this complexity hard to deal with. The matrix structure is generally considered the toughest organizational form to work in, due to the conflicting pulls on resources. This is a type of organizational structure which facilitates a horizontal flow of skills and informations. Under this structure, direct contact replaces bureaucracy. ii. Disadvantages of Matrix Organization. Find this complexity hard to deal with authority and responsibilities of managers through … disadvantages of a matrix.! 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