benefits of a matrix organizational structure: Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations Chron com


Employees have their regular work along with the additional project-related work, which can exhaust them. Employees may ignore their regular responsibilities if they are overtaxed. This allows open communication and knowledge sharing within the organization. This combination helps organizations achieve higher efficiency, readiness, and market adaptation. They can respond faster to customer demand with less product launch time.

department head

The lower you are on the chain of command, then the less you pay attention to the 5-year plan. With a matrix organizational structure, these workers can see how different areas of the company function, allowing them to see why some jobs are completed in a specific way. Again, the Whiteboard view came in handy, and we wanted to show how marketing departments can apply the matrix organization. In a nutshell – you can easily differentiate project managers from the content director, creative director, director of demand generation, and director of product marketing.


Projects have many activities, from resource planning to task management and everything in-between. Therefore, that organizational structure shouldn’t be rigid, but flexible and efficient. Through quality assurance protocols, there may be corrections that need to be made in the work completed.

Why Scheduling Issues Affect Project Management

The stores need to have a manager who will be responsible for all the activities done within a specific store. The flow of information in a matrix organizational structure is not clear. Different organizational structures are used by managers to determine how the organizations are supposed to be managed. The type of organizational structure is determined by the size of the organization and the type of work that the organization does. The organizational structure is supposed to meet the needs of the organization to realize the goal and objectives of the organization. Now that we know when to use matrix organizational structures, when not to use them is pretty easy to define.

traditional hierarchy

For example, new employees have less experience with the company’s business. In addition, the matrix structure’s complex nature means that it can take longer for teams to reach an agreement regarding what the next steps should be. This is a by-product of the increased levels of open communication that the matrix structure enables.

Strengthens teamwork

Unlike the top-down-, the matrix structure encourages communication between team members and their respective functions and project managers. AGCO, an agricultural machinery company, supports its matrix structure by offering specialized training that emphasizes communication between managers. Additionally, all managers take a course on the complexities of the matrix structure.


Working long hours can have a significant impact on employee wellness and employees are more likely to develop heart disease, hypertension, joint pain, weight loss, and fatigue. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. The moral of an employee is high as he is simultaneously working on different projects.

Less effective without managers’ cooperation

In many cases, teams created with a matrix organizational structure are stronger than those formed just using a functional approach due to the resulting diversity. Every employee can work together when the resource pool is flexible due to the matrix organizational structure. Results are more consistent across the board since employees follow standard operating procedures.

I hope this blog post has increased your understanding of the matrix organizational structure. Organizations should foster close cooperation between the project manager and the functional manager to avoid confusion and conflict. An authority conflict may arise between the project manager and the functional manager. Whether your company adopts a matrix structure depends on its size and complexity.

Matrix Organizational Structures Use-Cases and Examples

Traditional hierarchical models have been in use for millennia because they provide a straightforward framework for reporting. Supervisors benefit from knowing exactly who their direct subordinates are and their day-to-day tasks. Tesla came up with an eco-friendly car and got an enthusiastic reception from the market. It forces conventional car companies like BMW, Chevrolet, Honda, and Toyota to develop product innovations and compete with Tesla; otherwise, their markets are threatened. Then, in each region group, there is an executive at the helm, who also reports to the CEO at headquarters.

Keep in mind that the structures mentioned in this post aren’t the only ones out there. While a matrix organizational structure might not be right for your company — at least for now — there are others to consider. Often times, in projectized organizational structures, the foreman is the project manager and has authority to make budgetary and staffing decisions. Matrix organizational structures are often used in project management because they speak to both the product of the project and the function of the management producing it. Let’s take a closer look at this type of organizational structure to determine its pros and cons in project management. For example, Sean, a customer success representative, is on a team whose project is identifying and correcting bugs within his company’s software.

Though benefits of a matrix organizational structure structure adds complexity, the benefits far outweigh it. While matrix organizational structures open the lines of communication, they can also make reporting more confusing. When employees have two bosses to report to, details can easily become jumbled. Additionally, the question of who’s really in charge becomes less clear and sparks may fly between department and project managers if their purposes conflict.

However, engaging with key decision-makers can actually facilitate the exchange of information and expertise and improve organization-wide relationships. In a horizontal structure, copywriters report to the creative director, who reports to the CMO, who then reports to the CEO. Reporting is linear, and everyone from marketing, sales, design, and development, to finance and HR teams follow the same reporting structure.

Maximizes Use of Resources

Matrix organizational structures were designed to help companies complete large, complicated projects. The kind that requires them to efficiently process immense volumes of information and deploy specialized knowledge on a short timetable. One issue that many companies face is a lack of awareness of the overall vision and mission of the organization at the entry-level positions of the company.

  • Approaching your organizational redesign with people and systems in mind can help drive success.
  • A matrix organizational structure is one in which employees report to multiple bosses rather than just one.
  • For instance, a local construction company might use a projectized structure.
  • The matrix organizational structure allows a corporation to leverage the human capital of the whole company rather than drawing from single resource pools.

When the matrix organizational structure gets implemented in the modern organization, then communication is simplified. The departmental walls that create competition in other companies disappear, making it easier for workers to move freely between different units. The goal of this method is to have each person share their experiences and expertise freely so that everyone benefits from their perspective.

How to Make Your Matrix Organization Really Work – MIT Sloan Management Review

How to Make Your Matrix Organization Really Work.

Posted: Thu, 17 Nov 2022 08:00:00 GMT [source]

The organizational structure of a company is the way in which hierarchy is defined. When built properly, every employee will know exactly what their individual job is and who they should report to. Even though two departments work for the same company, their required metrics could be competitive. When a worker is pulled from one department to the other for a project, they might be asked to complete work that competes with the objectives present in their own job. When that occurs, the outcome is almost always an inconsistent message from those who are in charge. At the end of the day, the worker becomes confused and this reduces their productivity.

That saves the company money because they’re able to reduce waste, eliminate duplication, and streamline job functions. When a matrix organizational structure is implemented, then everyone stays busier on any given day. Instead of being limited to their own silo, workers can be moved from place to place when demands make it necessary. That means you’re working on multiple projects at once instead of one project at a time. Although multitasking does bring with it certain disadvantages, you won’t have workers twiddling their thumbs is there is a slow day of work with their primary job responsibilities. As equipment and employees are shared across projects, the matrix structure allows resources to be used more efficiently.

As a result, it leads to a cross-functional coordinated effort on a project. On the one hand, the company must maintain current operations and make money. Large companies with multiple projects may also adopt this structure. Giant companies such as multinationals generally adopt a matrix structure. Headquarters establishes policies for subsidiaries while granting them a great deal of autonomy. Thus, management in the subsidiaries has independent operation and control over operations and production in their respective areas.

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