List of the Disadvantages of the Matrix Organizational Structure. The flow of this authority is always downwards. Read on to learn why a company might implement a matrix structure, and the advantages and disadvantages for both company and staff. Pros. Disadvantages of the Matrix Organizational Structure. Matrix Organizational Structure: Advantages, Disadvantages & Examples A matrix organizational structure is one of the most complicated reporting structures a company can implement. An employee may find this complexity hard to deal with. 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. Functional managers and project managers may have grudges against each other. One of the biggest pros of using a matrix organizational structure is that it allows the sharing of highly skilled resources between functional units and projects. There are several different organizational structures that corporations use today and they all have their advantages and disadvantages. In the above example, an organization is setup with three functional areas: logistics, training, and technical support. This article examines the matrix organization (MO). The famous matrix organization consists of cutting and then combining the functions of the company (research and development, marketing, sales, etc.) The disadvantages of matrix organization are as follows-The employees are working under multiple bosses, and sometimes situations arise where one boss is played against the other by an employee; Conflict arises as resources are pulled in several directions and this leads to ambiguity; Accountability becomes difficult because of shared responsibility ; There is a confusion about the … The most serious problems associated with matrix organization structure are lack of centralized leadership, absence of a cohesive team, and improper implementation of project plan. A matrix organisation is a two dimensional structure, a combination of pure project structure and the traditional functional departments (Fig. At the end of the day, employees have to perform dual reporting among management. Let us look at the benefits and drawbacks of three (or rather, five) of the more modern structures. A matrix organizational structure is most commonly used in companies to distribute resources and workers across multiple operations. In other words, the matrix organisation is a project organisation plus a functional organisation. Following are the disadvantages of functional organization: i. 2. 6.17). Explore an interactive graphic of our matrix management learning path showing how we train leaders to overcame these potential disadvantages.See more of our insights including more blogs, free webinars and white papers on matrix management. After providing a brief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. Managers might also keep dumping more … The matrix organization can therefore be defined as a mixture between the functional organization and the divisional organization. Organizational Structure. 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