Merits and Demerits of Matrix Organization


The main benefits of matrix organization are as follows:

It effectively focuses attention & resourse on a single project. This leads to better planning & control which, in turn help in completion of project in time.

It is more flexible than the traditional functional organization. It can be more easily adopted to changes in technology.

It stresses authority of knowledge rather than status. Therefore, services of professionals can be better utilised. They can test their professional competence and widen their scope to contribute maximum towards the achievement of objectives.

Matrix structure provides motivation to personnel engaged in a project. It also improves communication by encouraging direct contact between project manger & functional groups.

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Matrix  organization  is  subjected  to  following  limitations:

It  violates  the  principle  of  unity  of  command  as  functional  groups  receive  orders  from  both  functional  boses  & project  manager. This  may  give  rise  to  power, struggle  &  jurisdictional  conflicts  in  the  organization.

The  organizational  relationships  become  very  complex  &  there  is  great  confusion  among  personel. They  fail  to  identify  their  respective  superiors  as  there  are  both  formal  &  informal  relationships.

Coordination  of  people  drawn  temprorily  from  different  functional  departments  become  very  difficult.  It  is  not  a  homogeneous  group  &  in  the  absence  of  line  authority,  the  project  manager  cannot  control  its  functioning. Morale  of  such  a  heterogeneous  group  is  likely  to  be  low.

Joint  decision  making  &  sharing  of  resources  are  required. In  the  absence  of  spirit  of  understanding  &  accommodation  vital  decesions  get  delayed. Each  executive  may  emphasis  his  own  area  at  the  cost  of  the  success  of  the  organization. This  will  result  into  conflict  and  projects  might  not  be  completed  in  time.

Matrix  structure  can  be  successful  only  there  is  an  agreement  amongst  the  key  executives  regarding  the  sharing  of  authority  &  resources. There  should  be  common  willingness  among  both  functional  ,managers  &  project  managers  to  resolve  the  conflicts  that  may  arise  due  to  sharing  of  resources. 

You May Also Like To Read: Merits and Demerits of Project Organisation

Merits and Demerits of Matrix Organization Merits and Demerits of Matrix Organization 

Merits and Demerits of Matrix Organization Merits and Demerits of Matrix Organization 

By Hassham

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