Matrix Arrangement - Important Features Advantages Limitations

Matrix Organisation - Meaning

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

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

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

The organisation is likewise divided on the the world 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 regime (bosses). The blogspot.com//search?q=authority-responsibility-and">authority of the Functional Manager flows downwards piece the potency of the Project Manager flows across (side wards). So, the potency flows downwards in addition to across. Therefore, it is called "Matrix Organisation".

An instance of matrix organisation is shown inwards 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 blogspot.com//search?q=authority-responsibility-and">organisation structures. It combines functional organisation with a projection organisation. Therefore, it has the merits in addition to demerits of both these organisation structures.
2. Functional Manager : The Functional Manager has potency over the technical (functional) aspects of the project.
   
   The responsibilities of functional managing director are:-
   1. He decides how to practise the work.
   2. He distributes the projection piece of work with his subordinates.
   3. He looks afterwards the operational aspects.
   
   
3. Project Manager : The Project managing director has potency over the administrative aspects of the project. He has amount potency over the fiscal in addition to physical resources which he tin utilization 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, at that topographic point is a work of the unity of command. This is so, because the subordinates have orders from ii bosses viz., the Project Manager in addition to the Functional Manager. This volition effect inwards confusion, disorder, indiscipline, inefficiency, etc. All this volition trim down the productivity in addition to profitability of the project.
5. Specialisation : In a Matrix organisation, at that topographic point 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 cook huge residential in addition to commercial projects inwards dissimilar places at the same time. Each projection is looked afterwards (handled) past times a projection manager. He is supported past times many functional managers in addition to 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 larn nearly finance, Finance people tin larn nearly 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 in addition to less of import piece of work to the projection managers.
4. Responds to Changes inwards Environment : Matrix Organisation responds to the negative changes inwards the environment. This is because it takes quick decisions.
5. Specialisation : In a matrix organisation, at that topographic point 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 utilization of the human in addition to physical resources. There is no wastage of resources inwards a matrix organisation.
7. Motivation : In a matrix organisation, the employees piece of work equally a team. So, they are motivated to perform better.
8. Higher Efficiency : The Matrix organisation results inwards 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 inwards Work Load : In a matrix organisation, piece of work charge is real high. The managers in addition to employees non alone have got to practise their regular work, only likewise have got to acquire by other additional industrial plant similar attention 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, at that topographic point is no unity of command. This is because, each subordinate has ii bosses, viz., Functional Manager in addition to Project Manager.
4. Difficulty of Balance : In a matrix organisation, it is non tardily to ease the administrative in addition to technical matters. It is likewise hard to ease the potency in addition to responsibilities of the projection managing director in addition to functional manager.
5. Power Struggle : In a matrix organisation, at that topographic point may survive a might scrap betwixt the projection managing director in addition to the functional manager. Each 1 looks afterwards 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 in addition to 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.