Matrix Organisational Structure

• Business Management Theory
• Introduction To Organisational Structures
• Matrix Organisational Structure

Introduction

A Matrix structure organisation contains teams of people created from various sections of the business. These teams will be created for the purposes of a specific project and will be led by a project manager. Often the team will only exist for the duration of the project and matrix structures are usually deployed to develop new products and services. An example is a national football team such as England being made up of English players from individual football clubs around the world (e.g. Manchester United, Real Madrid, Bayern Munich) for the football world cup.

Matrix Structure Advantages

The advantages of a matrix structure include:

• Individuals can be chosen according to the needs of the project.
• The use of a project team which is dynamic and able to view problems in a different way as specialists have been brought together in a new environment.
• Project managers are directly responsible for completing the project within a specific deadline and budget.

Matrix Structure Disadvantages

Whilst the disadvantages of a matrix structure include:

• A conflict of loyalty between line managers and project managers over the allocation of resources.
• If teams have a lot of independence they can be difficult to monitor.
• Increased costs if more project managers are created through the an increased reliance on project teams.

Conclusion

Matrix structures provide a way to use the expertise of people from various backgrounds for a specific task. This can be a challenge as the members of the matrix team do not usually work together and it could take them time to work together effectively.

Related Links: Introduction To Organisational Structures | Flat Structure | Hierarchical Structure | Tall Structure | Centralised And Decentralised Structures