Matrix Organisation - Pregnant Features Advantages Limitations

Matrix Organisation - Meaning

Matrix Organisation was introduced inward USA inward the early on 1960's. It was used to solve management problems inward the Aerospace industry.

Matrix Organisation is a combination of ii or to a greater extent than organisation structures. For example, Functional Organisation together with Project Organisation.

The organisation is divided into dissimilar functions, e.g. Purchase, Production, R & D, etc. Each role has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc.

The organisation is likewise divided on the footing of projects e.g. Project A, Project B, etc. Each projection has a Project Manager e.g. Project H5N1 Manager, Project B Manager, etc.

The employee has to piece of work nether ii government (bosses). The authority of the Functional Manager flows downwards piece the say-so of the Project Manager flows across (side wards). So, the say-so flows downwards together with across. Therefore, it is called "Matrix Organisation".

An instance of matrix organisation is shown inward the next diagram:-

Features of Matrix Organisation

The pecularities or characteristics or features of a matrix organisation are:-

1. Hybrid Structure : Matrix organisation is a hybrid structure. This is so, because it is a combination of ii or to a greater extent than organisation structures. It combines functional organisation amongst a projection organisation. Therefore, it has the merits together with demerits of both these organisation structures.
2. Functional Manager : The Functional Manager has say-so over the technical (functional) aspects of the project.
   
   The responsibilities of functional managing director are:-
   1. He decides how to exercise the work.
   2. He distributes the projection piece of work amidst his subordinates.
   3. He looks subsequently the operational aspects.
   
   
3. Project Manager : The Project managing director has say-so over the administrative aspects of the project. He has amount say-so over the fiscal together with physical resources which he tin utilisation for completing the project.
   
   The responsibilities of projection managing director are:-
   1. He decides what to do.
   2. He is responsible for scheduling the projection work.
   3. He co-ordinates the activities of the dissimilar functional members.
   4. He evaluates the projection performance.
   
   
4. Problem of Unity of Command : In a matrix organisation, in that location is a occupation of the unity of command. This is so, because the subordinates have orders from ii bosses viz., the Project Manager together with the Functional Manager. This volition consequence inward confusion, disorder, indiscipline, inefficiency, etc. All this volition cut the productivity together with profitability of the project.
5. Specialisation : In a Matrix organisation, in that location is a specialisation. The projection managing director concentrates on the administrative aspects of the projection piece the functional managing director concentrates on the technical aspects of the project.
6. Suitability : Matrix organisation is suitable for multi-project organisations. It is mainly used past times large construction companies, that build huge residential together with commercial projects inward dissimilar places at the same time. Each projection is looked subsequently (handled) past times a projection manager. He is supported past times many functional managers together with employees of the company.

Advantages of Matrix Organisation

The benefits or merits or advantages of a matrix organisation are:-

1. Sound Decisions : In a Matrix Organisation, all decisions are taken past times experts. Therefore, the determination are real good.
2. Development of Skills : It helps the employees to widen their skills. Marketing people tin acquire almost finance, Finance people tin acquire almost marketing, etc.
3. Top Management tin concentrate on Strategic Planning : The Top Managers tin pass to a greater extent than fourth dimension on strategic planning. They tin delegate all the routine, repetitive together with less of import piece of work to the projection managers.
4. Responds to Changes inward Environment : Matrix Organisation responds to the negative changes inward the environment. This is because it takes quick decisions.
5. Specialisation : In a matrix organisation, in that location is a specialization. The functional managers concentrate on the technical matters piece the Project Manager concentrates on the administrative matters of the project.
6. Optimum Utilisation of Resources : In the matrix organisation, many projects are run at the same time. Therefore, it makes optimum utilisation of the human together with physical resources. There is no wastage of resources inward a matrix organisation.
7. Motivation : In a matrix organisation, the employees piece of work every bit a team. So, they are motivated to perform better.
8. Higher Efficiency : The Matrix organisation results inward a higher efficiency. It gives high returns at lower costs.

Limitations of Matrix Organisation

The demerits or disadvantages or limitations of a matrix organisation are:-

1. Increase inward Work Load : In a matrix organisation, piece of work charge is real high. The managers together with employees non solely have got to exercise their regular work, only likewise have got to handle other additional plant similar care numerous meetings, etc.
2. High Operational Cost : In a matrix organisation, the operational toll is real high. This is because it involves a lot of paperwork, reports, meetings, etc.
3. Absence of Unity of Command : In a matrix organisation, in that location is no unity of command. This is because, each subordinate has ii bosses, viz., Functional Manager together with Project Manager.
4. Difficulty of Balance : In a matrix organisation, it is non tardily to residue the administrative together with technical matters. It is likewise hard to residue the say-so together with responsibilities of the projection managing director together with functional manager.
5. Power Struggle : In a matrix organisation, in that location may last a mightiness cope betwixt the projection managing director together with the functional manager. Each 1 looks subsequently his ain interest, which causes conflicts.
6. Morale : In a matrix organisation, the morale of the employees is real low. This is because they piece of work on dissimilar projects at dissimilar times.
7. Complexity : Matrix organisation is real complex together with the most hard type of organisation.
8. Shifting of Responsibility : If the projection fails, the projection managing director may shift the responsibleness on the functional manager. That is, he volition blame the functional managing director for the failure.