First, a few definitions so you understand what I'm talking about. iii. The advantages and disadvantages of matrix organizational structure don't just happen: The company's managers and their decisions influence whether the matrix's pros or cons win the day. Under this structure, there could be confusion regarding job and task responsibilities. Vertical Organizations A “vertical” company is known for having a large staff of middle managers between the CEO and the front line. Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations. Understanding the benefits and downsides of a matrix organizational structure can help you determine if this type of structure is best for your company. The matrix organization structure itself, solves nothing, it is how people work together in the matrix organization that makes it succeed or fail – and often this is the neglected bit. A matrix structure has its pros and cons. This article examines the matrix organization (MO). When a matrix organizational structure is implemented, then everyone stays busier on any given day. A matrix organizational structure is not a one-size-fits-all solution. List of the Advantages of the Matrix Organizational Structure 1. Fewer people, more work. … The Boston Consulting Group BCG Matrix is a simple corporate planning tool, to assess a company’s position in terms of its product range.. But it also involves much complexity and demands much communication so that all organizational managers--particularly the project and the functional--can effectively and efficiently work together. Cost and profit responsibilities may not be very clear in the matrix organisation. In this article, we will discuss what a matrix organizational structure is as well as the advantages and disadvantages of … ii. There is less overall downtime within the workplace. At the end of the day, employees have to perform dual reporting among management. Matrix Organization and its advantages and disadvantages. In a vertical company—which was most the most common business model in organizations for the much of the mid- to late-20th century—lines… In a matrix organization, instead of choosing between lining up staff along functional, geographic or product lines, management has both. Advantages. Following the matrix structure, the employees are given more tasks instead of hiring new people. The purpose of the BCG Matrix (or growth-share matrix) is to enable companies to ensure long-term revenues by balancing products requiring investment with products that should be managed for remaining profits.. Advantages of a matrix structure. If individual department heads can accomplish everything the company needs using the resources in their own silos, there's no need for a matrix. At a more detailed level the advantages that most organizations seek through using a matrix organization structure include A matrix organizational structure reveal relationships are set up as a matrix or a grid rather than in the traditional hierarchy. iv. This is an ideal example of a matrix structure where authority is flowing vertically as well as horizontally. The important disadvantages of the matrix organisation are the following: i. The Matrix Model Advantages & Disadvantages September 29, 2016 by Umar Farooq Just as its name suggests, the matrix model represents a company structure in which employees and managers of different departments belonging to the same business body are brought closer. There are advantages and disadvantages that need to be understood to know if it’s the right one for the organization. The matrix structure offers organizations an effective system for managing projects. It may take more time to take a decision. 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