Matrix organizational structure: features, advantages and disadvantages

The matrix organizational structure is the most difficult to implement. Initially it was used only in the space industry, in the electronics industry, and also in the field of high technologies. Such an organizational structure has become necessary in other enterprises, as there are changes in industry and other spheres of activity.

The matrix organizational structure has two main divisions:

- Product-oriented - responsible for the production of certain types of products. These divisions control the main issues relating to the tactical nature of the manufacture of goods. They are in the subordination of the head or his deputy, in charge of production.

- Sales - are focused on the sale of products to the consumer segment or in certain regions. These divisions are controlled by the head or his deputy on marketing.

Both units interact with the production departments. For example, sales divisions give the range of products that need to be manufactured. In turn, production units also supply both divisions with information about their work.

In the structure there are also functional services that solve various strategic tasks and are subordinated to the head of the company.

The matrix organizational structure has the following advantages:

1. The number of levels in the hierarchy of large enterprises is decreasing - the number of them is about five.
2. Increases the flexibility of the reaction, when the demand for products changes. Thus, the profit of the organization increases.
3. All technical policy of the company becomes unified.
4. The quality of the products is increasing, which increases the competitiveness of the enterprise in the market.
5. Senior managers remove a number of powers from themselves and delegate them to managers.

But such organizational management structures have a big drawback. Since divisions are connected with production, situations arise when they receive disparate orders. In this case, it is necessary for the enterprise to develop detailed instructions on the actions. But still in an organization with a matrix structure, there are often controversial situations. Sometimes they are resolved for a rather long time, as each division defends its interests.

The shortcomings of this structure also include:

- Its cumbersomeness, complexity and high cost in implementation.

- There is a great tendency towards anarchy.

- There is a possibility of a "war" for power, as the powers are sometimes not strictly stipulated, and the rights and obligations are somewhat "blurred".

- Large overhead costs, as the organization employs a significant number of people.

- There is a frequent duplication of certain functions.

- Decisions are sometimes taken with delay, as many of them are discussed in the group.

The matrix structure has two directions of leadership. Vertical - includes management of linear and functional units of the organization. Horizontal - the management of individual programs, projects, products.

The matrix organizational structure differs in that it employs several managers. Some manage the units, others control the execution of projects. But management should strive to maintain a balance between such organizational alternatives.

Distinctive feature of the matrix structure is the presence of all employees of the enterprise of two managers. In this case they have absolutely equal rights. That is, the executor obeys the head of the functional service, as well as the manager who supervises the project. In the end, this should improve the efficiency of the company as a whole.