Companies usually follow a centralized or decentralized organizational structure. Yet, sometimes organizations also adopt the matrix system. The matrix system pushes the team to work towards their goals more efficiently as they report to more people. It allows the managers to keep in touch with the teams and their members.
The matrix structure has disadvantages but still, it is more suitable for interconnecting different departments and having them on board about company activities. Let’s tell you all the advantages of matrix organizational structure to know why big names like Starbucks use the matrix system.
What is Matrix Organizational Structure?
The matrix organization is a fusion of functional and project management systems. It consists of an organizational structure where the employees report to multiple people simultaneously. It comprises a functional and a project manager. The project and functional managers supervise members of the same team. It enables the functional manager to have details of each project at the root level. Having a matrix organizational structure also gives insight into each employee’s performance.
Components of a Matrix Organizational Structure
The two fundamental components of a matrix structure are a functional manager and a project manager.
- The functional manager oversees the horizontal structure according to the department. They represent the traditional organizational structure.
- The project manager manages a cross-functional team. It is usually a different team for each project with representatives from each department.
In a matrix organizational system, these hierarchy systems work side by side. It gives equal, more or less opportunity to both according to the type of matrix structure.
Advantages of Matrix Organizational Structure
A matrix system brings different skilled and experienced workers together for a particular project. It improves communication between different departments and allows them to communicate openly. As more companies move towards specialized job roles, employees from different departments form a team. Employees from varying departments trust each other’s abilities under the functional and project managers.
Besides specialized jobs, the matrix system allows workers to perform different tasks in a project. While the right people perform the right task, they also get an opportunity to understand the working of other departments. This encourages the employees to give their input on the project based on previous experiences. You may also utilize a specialized person for another task per need as they understand the working through matrix system.
Steady Flow of Information
The flow of information is more efficient and quick when it goes both horizontally and vertically. It also prevents miscommunication as the employees report to two managers at once. All the team members are in the loop about the process and status of tasks.
Less Time Consumption
One of the most significant advantages of matrix organizational structure is how it speeds up the process. Communication between departments and the higher hierarchy makes the process quicker. Every person within a team performs the assigned task and reports to the managers. They command the next step to avoid hindrance in the process.
Efficient Use of Human Resources
When the employees are flexible and understand the process of different departments, they can be used more efficiently. The employees can be used in another domain if required. This saves you from hiring a new workforce for a short period.
Adaptation Per Need
The matrix system is of three types; weak matrix, strong matrix, and balanced matrix system. Each of them gives different authority to the functional and project managers. Organizations may choose from one of these according to their need for every project.
Consistent Functional Roles
This system combines functional and project roles. While the project roles may end with the project, the functional roles stay consistent. The team may participate in other projects. Thus, it provides better job security to the employees.
Working in a diversified environment in various projects enables the employees to learn more skills. They can utilize these skills in their job role or participate in other projects. It provides growth opportunities to the employees while excelling in their respective fields meanwhile.
The Bottom Line
The matrix system is a combination of functional and project management. In such a system, the members of each project team report to the functional and project managers. The advantages of a matrix organizational structure include less time consumption, open communication, flexibility, and choosing the right structure. It also empowers the employees by securing their jobs in functional roles and enabling them to acquire new skills.
Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.