An example of a matrix based organisational structure

ZIMSEC O Level Business Studies Notes: Matrix organisational structure

  • Is an organisational structure where subordinates have more than one reporting line i.e. some individuals report to more than one superior.
  • It is also known as the hybrid organisational structure as it incorporates more than one type of organisational structure
  • It usually arises when there is say a certain project that has to be accomplished within an organisation
  • For example when a business wants to develop a new product
  • Employees from different departments are then brought together to accomplish these goals
  • These employees have to report to both the project leaders and their usual superiors
Efficient use of human resources instead of hiring additional people current staff is utilisedIncreases complexity within the organisation
There is formal coordination across departmentsThere can be conflicts between project and departmental goals
Information flows both across and up the organisationViolates the unity of command principle
Motivates staff who get to contribute and use their expertiseIncreases management and labor costs
Makes the organisation more flexible and able to respond to business environment changesDifficult to coordinate
Experts can be chosen according to the needs of the projectIt takes time for members of the matrix structure to get used to it
Fosters teamworkTeam members may neglect their usual duties as they focus on the project
Encourages delegation and frees up top management

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