An example of a matrix based organisational structure
ZIMSEC O Level Business Studies Notes: Matrix organisational structure
- Is an organisational structure where subordinates have more than one reporting line i.e. some individuals report to more than one superior.
- It is also known as the hybrid organisational structure as it incorporates more than one type of organisational structure
- It usually arises when there is say a certain project that has to be accomplished within an organisation
- For example when a business wants to develop a new product
- Employees from different departments are then brought together to accomplish these goals
- These employees have to report to both the project leaders and their usual superiors
| Advantages | Disadvantages |
|---|---|
| Efficient use of human resources instead of hiring additional people current staff is utilised | Increases complexity within the organisation |
| There is formal coordination across departments | There can be conflicts between project and departmental goals |
| Information flows both across and up the organisation | Violates the unity of command principle |
| Motivates staff who get to contribute and use their expertise | Increases management and labor costs |
| Makes the organisation more flexible and able to respond to business environment changes | Difficult to coordinate |
| Experts can be chosen according to the needs of the project | It takes time for members of the matrix structure to get used to it |
| Fosters teamwork | Team members may neglect their usual duties as they focus on the project |
| Encourages delegation and frees up top management |
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