Advantages And Disadvantages Of A Matrix Organizational Structure
Q.1. (a) Matrix Organizational Structure The matrix organisational structure is also called the mixed model. And, just as the name implies, the matrix organisational structure has a mix or confluence of different employees, from the same organisation, who work together, but only temporarily. For example, the sales department requires experts from finance, production, product development, research and development to all be on board for a particular project that requires the expertise of all the experts, so as to ensure better thought process and outcome for the company. Advantages:- The decisions are taken by experts at all times, who are experts in their own respective departments. This ensures that the project assigned is in experienced hands, and even the workforce that is hired, is used to working in tandem with their respective managers. The top most managers can rely on the project managers, since the project managers are the most experienced in their respective department. This gives the head managers to chalk out a strategic plan and also to devise new plans in the welfare of the project which would not have been possible if they were the project managers. Disadvantages:- The matrix organisation structure definitely causes an increase in the operation costs. Such organisational structures have a lot of costs that are incurred on paperwork, board meeting, and sometimes employees also have to be paid
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