What Are The Advantages And Disadvantages Of Matrix Organisational Structure?

A matrix organizational structure groups employees by the product they produce and the functions that they perform. Teams of employees are used to accomplish a task and it focuses on employee's strengths in a decentralized management structure. Most often there is a project manager who oversees the cross functional area of a project that shares power with functional managers who oversee each product line. There are several advantages and disadvantages of such an organizational structure, and whether or not it is right for a company depends on the company itself.

Some of the strategic advantages of this organizational structure are reduced working capital and process cycle times can be reduced in most cases. It creates checks and balances between competing viewpoints and promotes making trade-off decisions that are best for the company as a whole. It encourages cooperation and consensus building.

It also has a number of disadvantages that make it unsuitable for use in many companies. It is very complex to manage and hard to maintain balance between differing lines of authority. It is also hard to move quickly as a whole since so many people have to sign off on a decision. It can when not managed correctly and precisely create an organizational bureaucracy and stifle any sort of creative entrepreneurship.

A matrix organizational structure will work best in a creative work situation where people have specific talents that can be identified and assigned. Management in a matrix organizational structure must have strong people skills in order to get things done on time and under budget. It also works well with a business that makes custom products or products that vary a great deal from one another. If a centralized organizational structure is not working for your business, a matrix structure may be the right business organizational choice.

Following are the advantages of Matrix organizational structure:
- Minimization of project costs, due to sharing of resources.
- Mimimization of conflicts
- Balance between time, cost and performance
- Sharing of authority and responsibility
- Stress distribution between the team
- Information sharing
Following are the disadvantages
- Not suitable for small organizations
- Complete responsibility of the Manager for success or failure
- The team lead gets all the credit
- Suitable only for project based organization.

Describe how you, as a project manager in a matrix organisation, will set up your project team for the building of the community hall?

Have identified a need of a community hall!describe how you, as project manager will set up your project team for the building of the community church