What is a matrix organization? What advantages and disadvantages are associated with this type of organization?

Organization

An organization is an entity including a number of people for example institution or an association which has a common goal and connected to an external environment.

Matrix Organization

The matrix organization was introduced in the USA in 1960. Matrix organization is an organization in which employees have to report to more than one boss. This organization is a combination of generally two types of Organizations:

  • Functional organization
  • Divisional organization

Therefore, an employee has to report to both functional manager and divisional manager.

Advantages of matrix organization

  • It creates a good work environment among the employees and managers of the company, due to which organization always remain integrated.
  • It helps in increasing the employee’s skills because they are able to work within different departments, which helps them get some extra skills.
  • It leads to the Proper use of resources, it is because different projects are running in this type of organization, and therefore these can make better use of resources.
  • It brings the confidence among employees as they are able to learn new skills in various areas.

Disadvantages of matrix organization

  • This organization increases the workload on employees.
  • Complex structure.
  • Unity of command is violated because employees have more than one boss.