The advantages of a matrix organizational structure include which of the following?

A matrix organisational structure doesn't follow the traditional, hierarchical model. In the matrix structure, you share resources and staff across teams and projects, as well as within departments or functions.

What is a matrix organisational structure?

A matrix structure is a combination of two or more types of organisational structures. It is a way of arranging your business so that you set up reporting relationships as a grid, or a matrix, rather than in the traditional hierarchy.

In this structure, employees usually have dual reporting relationships - generally to their functional manager as well as the project manager. Typically, one reporting line will take priority over the other (eg staff may have to report to their functional manager before reporting to the project manager).

Examples of matrix structure

Different forms of matrix structure exist. These fall under three main categories, depending on the level of power of the project manager:

• Functional or weak matrix - the functional manager retains most of the power and is in charge of the people and resources. The project manager has a minimal role and tends to carry out administrative or coordinating tasks.
• Strong matrix - the project manager holds most of the power and authority, controls the project budget and manages staff. The role of the functional manager is limited.
• Balanced matrix - the functional managers and the project managers share the power and the authority over staff and budget.

In large organisations, it is possible to involve all these types of matrix structure at different levels within a business. This is sometimes referred to as a 'composite organisation'.

The advantages of a matrix organisational structure

The main advantage of the matrix structure is that it can:

• improve decision-making, since there are two chains of command
• help break down traditional 'silo' barriers
• improve communication across the business
• allow staff to apply their skills in different roles
• help share best practice and ideas across teams
• increase efficiencies due to sharing resources across departments

The matrix structure can also help businesses achieve quick market adaptation to changing customer needs, as it can decrease the lead time to produce a new product. This structure is most suitable for businesses operating in a dynamic environment.

The disadvantages of a matrix organisational structure

A matrix structure may not be well suited for businesses working in a more settled environment, with set customer requirements. Because of its complexity, and the need for employees to report to two bosses, it can lead to:

• confusion regarding roles, responsibilities and priorities
• divided loyalties between project teams
• blurred lines of accountability
• difficulties in coordinating tasks or functions
• power struggle between the project manager and the functional manager
• large overhead costs, on account of having multiple managers

Matrix organisational structure vs functional

A matrix organisational structure often exists alongside a traditional functional structure. It is common in large and multi-project organisations that relocate employees when and where they need them. For smaller businesses with limited resources, organisational structure by function may be more suited.

The correct option is D.

In a matrix organization, there remains a scope of confusion about duties and responsibilities. In a hierarchical structure job duties are absolutely clear cut but in a matrix, organization scope remains for some sort of overlapping.

For leaders, it will lead to conflicts as to putting accountability of who is being responsible.

For members, it might create confusion about reporting and taking initiative as a functional manager is also there and so is the project manager.

Option A is not correct because in the case of matrix organizations sometimes power struggles are there between managers as one is functional and the other is the project manager.

Option B is not correct because in a matrix organization managers have to put more effort into coordinating efforts as it is a mix of more than one structure.

Option C is not correct because in matrix organization role ambiguity is high. An employee has to report to both, the functional manager as well as project manager. So often he or she gets doubtful about their duties and responsibilities.

Matrix Management

As we have seen in other posts, a matrix organization structure does introduce (or recognize)  a higher level of complexity and some distinct people management challenges, so why do organizations do it? There must be significant advantages to a matrix structure that outweigh the matrix people management challenges.

Matrix organization structures were introduced over 50 years to cope with the complex projects required in the aerospace industry. Since then many thousands of organizations, often prompted by the large strategy consultancies, have adopted the matrix structure to help deal with internal and external complexity.

At its simplest the matrix just recognizes complexity. Companies realize that geography is important but so is function, and so is customer grouping, product and technology. Instead of choosing a dominant organizing principle we choose to reflect all of these important strands in our structure, we have solid lines to product group and function, dotted lines to geography etc…

The structure, however, solves nothing. It is how people work together in the matrix that makes it succeed or fail – and often this is the neglected bit.

At  a more detailed level the advantages that most organizations seek through using a matrix organization structure include:

• improved ability to access resources across the old functional and geographic silos.
• better coordination on shared technologies across the organization (such as IT).
• improves access to a diverse range of skills and perspectives.
• improved global or regional projects.
• increased communication and coordination across the business.
• reflects the needs of global or regional customers.

As we can see, most of these are about improving the way people work together and breaking down traditional barriers to cooperation.

The idea of the matrix structure is to enable faster response and adaptation to a complex world. The structure can deliver this, provided people have the skills to make the matrix work.

See more in our matrix management insights or matrix management training

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Why did your organization introduce a matrix?

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