Matrix Structure

When looking at the subject of organisational structures, matrix structures are often a natural progression from functional or divisional structures as firms seek to gain the advantages of each.

What is a matrix structure?

Advantages & disadvantages of matrix structures

Advantages

• In today's rapidly changing environment, there is a need for effective coordination in very complex situations. If a car manufacturer wants to design, produce and market a new model, the process involves most parts of the organisation and a flexible/adaptable system is needed to achieve the objectives. The more rigid structure experienced in a divisional company would not have the flexibility to be able to coordinate the tasks and the people, whereas the matrix structure can cope.
• The production managers could be replaced with customer managers, in which case the whole team will be focussed on meeting the needs of the customer.

Disadvantages

• Where the matrix structure can cause difficulty is in the lines of control. These may become ambiguous and conflict with each other. A team member may be answerable to the product manager and to a functional head, and this may cause confusion and stress. Time consuming meetings may be required to resolve the conflict, so resulting in higher administration costs.

Other types of structures

• Entrepreneurial
• Functional
• Divisional 

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Tags:	matrix;organisational structure