Matrix Scheme - Important Features Advantages Limitations

Matrix Organisation - Meaning

Matrix Organisation was introduced inwards USA inwards the early on 1960's. It was used to solve management problems inwards the Aerospace industry.

Matrix Organisation is a combination of 2 or to a greater extent than organisation structures. For example, Functional Organisation together with Project Organisation.

The organisation is divided into unlike functions, e.g. Purchase, Production, R & D, etc. Each business office has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc.

The organisation is likewise divided on the reason of projects e.g. Project A, Project B, etc. Each projection has a Project Manager e.g. Project H5N1 Manager, Project B Manager, etc.

The employee has to piece of work nether 2 regime (bosses). The blogspot.com//search?q=authority-responsibility-and">authority of the Functional Manager flows downwards piece the ascendance of the Project Manager flows across (side wards). So, the ascendance flows downwards together with across. Therefore, it is called "Matrix Organisation".

An instance of matrix organisation is shown inwards the next diagram:-

Features of Matrix Organisation

The pecularities or characteristics or features of a matrix organisation are:-

1. Hybrid Structure : Matrix organisation is a hybrid structure. This is so, because it is a combination of 2 or to a greater extent than blogspot.com//search?q=authority-responsibility-and">organisation structures. It combines functional organisation alongside a projection organisation. Therefore, it has the merits together with demerits of both these organisation structures.
2. Functional Manager : The Functional Manager has ascendance over the technical (functional) aspects of the project.
   
   The responsibilities of functional director are:-
   1. He decides how to practise the work.
   2. He distributes the projection piece of work amid his subordinates.
   3. He looks afterwards the operational aspects.
   
   
3. Project Manager : The Project director has ascendance over the administrative aspects of the project. He has sum ascendance over the fiscal together with physical resources which he tin occupation for completing the project.
   
   The responsibilities of projection director are:-
   1. He decides what to do.
   2. He is responsible for scheduling the projection work.
   3. He co-ordinates the activities of the unlike functional members.
   4. He evaluates the projection performance.
   
   
4. Problem of Unity of Command : In a matrix organisation, at that topographic point is a job of the unity of command. This is so, because the subordinates have orders from 2 bosses viz., the Project Manager together with the Functional Manager. This volition trial inwards confusion, disorder, indiscipline, inefficiency, etc. All this volition cut back the productivity together with profitability of the project.
5. Specialisation : In a Matrix organisation, at that topographic point is a specialisation. The projection director concentrates on the administrative aspects of the projection piece the functional director concentrates on the technical aspects of the project.
6. Suitability : Matrix organisation is suitable for multi-project organisations. It is mainly used yesteryear large construction companies, that build huge residential together with commercial projects inwards unlike places at the same time. Each projection is looked afterwards (handled) yesteryear a projection manager. He is supported yesteryear many functional managers together with employees of the company.

Advantages of Matrix Organisation

The benefits or merits or advantages of a matrix organisation are:-

1. Sound Decisions : In a Matrix Organisation, all decisions are taken yesteryear experts. Therefore, the determination are really good.
2. Development of Skills : It helps the employees to widen their skills. Marketing people tin acquire most finance, Finance people tin acquire most marketing, etc.
3. Top Management tin concentrate on Strategic Planning : The Top Managers tin pass to a greater extent than fourth dimension on strategic planning. They tin delegate all the routine, repetitive together with less of import piece of work to the projection managers.
4. Responds to Changes inwards Environment : Matrix Organisation responds to the negative changes inwards the environment. This is because it takes quick decisions.
5. Specialisation : In a matrix organisation, at that topographic point is a specialization. The functional managers concentrate on the technical matters piece the Project Manager concentrates on the administrative matters of the project.
6. Optimum Utilisation of Resources : In the matrix organisation, many projects are run at the same time. Therefore, it makes optimum occupation of the human together with physical resources. There is no wastage of resources inwards a matrix organisation.
7. Motivation : In a matrix organisation, the employees piece of work equally a team. So, they are motivated to perform better.
8. Higher Efficiency : The Matrix organisation results inwards a higher efficiency. It gives high returns at lower costs.

Limitations of Matrix Organisation

The demerits or disadvantages or limitations of a matrix organisation are:-

1. Increase inwards Work Load : In a matrix organisation, piece of work charge is really high. The managers together with employees non solely have got to practise their regular work, exactly likewise have got to deal other additional industrial plant similar aid numerous meetings, etc.
2. High Operational Cost : In a matrix organisation, the operational terms is really high. This is because it involves a lot of paperwork, reports, meetings, etc.
3. Absence of Unity of Command : In a matrix organisation, at that topographic point is no unity of command. This is because, each subordinate has 2 bosses, viz., Functional Manager together with Project Manager.
4. Difficulty of Balance : In a matrix organisation, it is non tardily to residue the administrative together with technical matters. It is likewise hard to residue the ascendance together with responsibilities of the projection director together with functional manager.
5. Power Struggle : In a matrix organisation, at that topographic point may hold out a might deal betwixt the projection director together with the functional manager. Each ane looks afterwards his ain interest, which causes conflicts.
6. Morale : In a matrix organisation, the morale of the employees is really low. This is because they piece of work on unlike projects at unlike times.
7. Complexity : Matrix organisation is really complex together with the most hard type of organisation.
8. Shifting of Responsibility : If the projection fails, the projection director may shift the responsibleness on the functional manager. That is, he volition blame the functional director for the failure.