Advantages Of A Matrix Model

Matrix Model

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. In the concept, the reporting relationships take the form of a matrix or grids, instead of a hierarchy. In simpler words, there are more than one bosses under which people work and so there are multiple reporting lines, which means that they have to report on their progress to all of their bosses. For many businesses, matrix model can be the best way to go with but for most of the others, it can ruin their business. It all depends on upon the set of objectives that the business owners have noted down in their minds for their businesses

It gives rise to a system through which the information is transferred from one end to other without any major loss.

Because of the model, different departments of the business work closely and try to keep their coordination up and running, by making frequent communications, to solve issues immediately. Furthermore, the chances of creativity to get out and flourish increase tremendously. Since, everything gets connected in a closed structure, so all this, in turn, boosts productivity because of the high-speed decision-making process.

For example, highly effective advertising strategies can be formulated by taking advantage of the matrix model since it connects the individuals belonging to the department of marketing to those of product departments and finance. So, in this way, the marketing department can contact the product department, anytime, to gather information about the recent updates made to the product. It can also be that the product department can reshape its product with the help of the information gathered by the marketing department in terms of market competition. The same goes for the finance department since it can re-plan its investment strategies and much

If this situation persists for longer periods of time, then there is a high chance that the business will have to face high employee turnover, which will just worsen the conditions.

High costs involved A huge disadvantage of the matrix model is the tremendous expense which acts as an immense drainage point of the budget of the company. It’s actually the need of the dual management that raises the overhead costs for the business. Since the brand has to pay extra salaries to those who are added because of the model, this puts a strain on the resources of the brand. The expertise that the employees, working under the dual management, bring to the table is a valuable asset to the business. But under the conditions of internal conflicts aroused by the sharing of employees between different supervisors, this expertise just tries to find a sheltered place for the employee. Before these conflicts take the shape of hostility within the workplace and retard the production levels because of the scarce resources, it is important for the upper management to take proper decisions to avoid the