ii. A matrix structure has its pros and cons. First, a few definitions so you understand what I'm talking about. When a matrix organizational structure is implemented, then everyone stays busier on any given day. Understanding the benefits and downsides of a matrix organizational structure can help you determine if this type of structure is best for your company. In this article, we will discuss what a matrix organizational structure is as well as the advantages and disadvantages of … List of the Advantages of the Matrix Organizational Structure 1. iii. The advantages and disadvantages of matrix organizational structure don't just happen: The company's managers and their decisions influence whether the matrix's pros or cons win the day. The Boston Consulting Group BCG Matrix is a simple corporate planning tool, to assess a company’s position in terms of its product range.. Pros. Here are some of the advantages and disadvantages of having a matrix organizational structure in the workplace. Under this structure, there could be confusion regarding job and task responsibilities. A matrix organizational structure is not a one-size-fits-all solution. The purpose of the BCG Matrix (or growth-share matrix) is to enable companies to ensure long-term revenues by balancing products requiring investment with products that should be managed for remaining profits.. … The matrix organization structure itself, solves nothing, it is how people work together in the matrix organization that makes it succeed or fail – and often this is the neglected bit. Following the matrix structure, the employees are given more tasks instead of hiring new people. But it also involves much complexity and demands much communication so that all organizational managers--particularly the project and the functional--can effectively and efficiently work together. Advantages. There is less overall downtime within the workplace. Vertical Organizations A “vertical” company is known for having a large staff of middle managers between the CEO and the front line. The important disadvantages of the matrix organisation are the following: i. It may take more time to take a decision. If individual department heads can accomplish everything the company needs using the resources in their own silos, there's no need for a matrix. This article examines the matrix organization (MO). This is an ideal example of a matrix structure where authority is flowing vertically as well as horizontally. There are advantages and disadvantages that need to be understood to know if it’s the right one for the organization. Matrix Organization and its advantages and disadvantages. Cost and profit responsibilities may not be very clear in the matrix organisation. Fewer people, more work. Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations. In a vertical company—which was most the most common business model in organizations for the much of the mid- to late-20th century—lines… At a more detailed level the advantages that most organizations seek through using a matrix organization structure include The Matrix Model Advantages & Disadvantages September 29, 2016 by Umar Farooq Just as its name suggests, the matrix model represents a company structure in which employees and managers of different departments belonging to the same business body are brought closer. iv. The matrix structure offers organizations an effective system for managing projects. In a matrix organization, instead of choosing between lining up staff along functional, geographic or product lines, management has both. Advantages of a matrix structure. A matrix organizational structure reveal relationships are set up as a matrix or a grid rather than in the traditional hierarchy. At the end of the day, employees have to perform dual reporting among management. 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