matrix-organizational-structure

Matrix Organizational Structure In A Nutshell

A matrix organizational structure generally describes a business with multiple managerial accountability and responsibility. The main types of matrix structures comprise the strong matrix (authority lies with a project manager who has a senior role within the company), balanced matrix (it equally distributes power to both the project and functional manager), and weak matrix (where power lies with the functional manager completely).

Understanding a matrix organizational structure

There are no set guidelines for a matrix organizational structure. This is because the matrix structure is simply a combination of two or more structure types to give each more balance. As a result, a business can create a matrix structure according to its particular needs and the industry it operates in.

Nevertheless, most organizations using this structure incorporates two chains of command. One manages functional activities while the other is tasked with managing projects, products, or clients. It’s important to note that these roles are fluid and the balance of power between each manager is not organizationally defined.

Rather than one project manager overseeing every aspect of a project, employees report to two or more managers. This arrangement is often useful when skills need to be shared across departments to complete a task.

Three types of matrix structures

The matrix organizational structure can be divided into three types:

  1. Strong matrix – where authority lies with a project manager who has a senior role within the company. With control over resources and distribution of tasks, the project manager may have more power than the functional manager.
  2. Balanced matrix – as the name suggests, the balanced matrix equally distributes power to both the project and functional manager. Employees report to the project manager who in turn reports to the functional manager to ensure accountability.
  3. Weak matrix – where power lies with the functional manager completely. In this scenario, the project manager has a role better defined as a project coordinator or expeditor. They act as a facilitator between the customer and the project team and can only institute minor project management directives.

Advantages and disadvantages of the matrix organizational structure

Advantages

  • Enhanced communication – with none of the communication barriers seen in a purely hierarchical structure, communication between departments is fluid and collaborative. Large and diverse companies featuring many functional units can collectively work toward a shared goal.
  • Employment development – employees working under a matrix structure are exposed to new methods and ways of thinking. This helps them push the boundaries of their comfort zones to further personal and organizational objectives.

Disadvantages

  • Lack of effectiveness. Large companies may suffer from organizational bloating, where a surplus of managerial and administrative roles combined with more points of communication may decrease productivity. The decision to combine various organizational structures may instead dilute the benefits each structure brings in isolation.
  • Disharmony. Cross-functional working under a matrix structure does not always succeed. Teams can lose their best talent to other teams or departments indefinitely, causing further productivity losses and a decrease in morale. In some cases, employees returning to their teams after an unsuccessful stint elsewhere may have trouble re-integrating.

Key takeaways

  • A matrix organizational structure describes any business with multiple chains of command. In general, the matrix structure is any that combines two or more organizational structure types.
  • A matrix organizational structure can be divided into three types according to the way power is distributed to the project and functional manager. These encompass a hard matrix, balanced matrix, and weak matrix.
  • The matrix structure enhances communication throughout the organization and encourages employee professional development. However, the amalgamation of several structure types in a large company may erode the particular benefits of each.

Read Next: Organizational Structure.

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"