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Matrix Structure Diagram Advantages, Disadvantages & Examples
Matrix Organization: The Advantages And The Disadvantages

Managers are now beginning to say, “It isn’t that new or different after all.” This familiarity is a sign of acceptance, more than of change or moderation of the design. Can moving into a matrix lead to the strangulation of the decision process, into endless delays for debate, for clearing with everybody in sight?

A project manager, on the other hand, oversees a cross-functional project team with representatives from each department. In this structure, a marketing specialist reports to their functional marketing manager as well as their project manager.

Balance the Management

Furthermore, according to this pattern of behavior, the employees decide what they want to do and tackle the challenges that accompany their actions. For example, some companies and departments organizing the London 2012 Olympic Games will require their own resources. This means that the government will spend a lot of money funding each body.

What is matrix organizational advantages and disadvantages?

Matrix organizational structures help companies communicate better, share resources between departments, and efficiently develop employees. But they can also add confusion to the reporting process, create heavy workloads for employees, and cost more money.

In strong matrix organizations, the project managers have full authority and a full-time role. They control the budget, and a full-time project management team will report to them. In this way, a strong matrix structure shares characteristics with a projectized organization. The matrix organizational structure can represent an additional significant expense for some companies.

Project managers can be coaches

A matrix organizational structure is a company structure where the reporting ladder is in a matrix or grid instead of the traditional hierarchy. This structure means that workers simultaneously report to a functional manager and a product manager.

Matrix Organization: The Advantages And The Disadvantages

This meant that every issue had to be discussed in at least two meetings, if not more. As a proposal project proceeds, the selected project manager is drawn into the team in anticipation of securing the contract.


In a matrix organization, both the project manager’s subordinates and the functional manager’s subordinates work together to achieve common projects or objectives. That means the project managers can provide leadership support and training by example to the workers who come under their assignment umbrella.

  • If you only need to view specific data, you can filter your dashboard by person, status, etc.
  • That is why clear communication is necessary within this structure on a consistent basis.
  • For instance, if the Olympic board does not have enough unskilled workers, it can get some untrained employees from the London Development Agency.

The firm’s non-billable costs are, therefore, very conspicuous—both by department and by individual consultant. Of course, some time charged to functional departments, such as background study, research work, and time between assignments should by no means be thought of as wasted.

Business process analysis (BPA) explained

Reporting to multiple managers can create confusion for both employees and managers. Overhead administrative costs, such as salaries, increase in a matrix structure. This is a challenge to matrix management that leaders should consider carefully. Matrix employees are pooled out for work assignments, even to projects that are not necessarily in line with their skill background. With Matrix Organization: The Advantages And The Disadvantages this approach to management, employees have the chance to widen their skills and expertise. The matrix structure diagram is one of the most commonly used reporting structures that a company can implement to emphasize efficiency, creativity, and innovation. As in this structure, the employees are added to new projects without removing from their regular work, they feel overburdened.

  • They don’t lend themselves well to large-scale projects involving cross-functional teams, where knowledge and resources are often shared.
  • Thirdly, the geographical structure depends on the location of the different organizations.
  • There is a new chain of command for every new supervisor appointed to a project in a matrix organizational structure.
  • Roles and responsibilities should be clear and communicated to employees to avoid confusion.
  • Project managers are given the task of smoothly and successfully completing the projects.
  • They report to and take instruction from their functional manager, the project manager and in some cases multiple project managers.

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