What is a matrix organization? What advantages and disadvantages are associated with this type of organization?
Matrix Organization and its advantages and disadvantages
A matrix organizational structure reveal relationships are set up as a matrix or a grid rather than in the traditional hierarchy. At the end of the day, employees have to perform dual reporting among management. This structure of organization is atypical because it unites employees and managers from various departments to progress in the direction of accomplishing a goal (Johnson, 2017). Entrepreneurs ought to understand the advantages and limitations of the matrix structure before executing it. One of the advantages of executing this structure in a business is that it can lead to a proficient exchange of information. Departments work firmly together and communicate with each other much of the time to illuminate issues (Johnson, 2017). Proficient lines of communication enhance profitability and allow for speedy basic leadership. The matrix structure encourages a democratic leadership style. This style incorporates the contribution of team individuals before managers make choices which enhance employee satisfaction and increased motivation. A disadvantage of the matrix structure is that it can bring about internal multifaceted nature (Johnson, 2017). Along with that the implementation of this structure is costly. A company’s overhead cost typically increases because of the requirement for twofold management.