Matrix Organisation - Meaning
Matrix Organisation was introduced inward USA inward the early on 1960's. It was used to solve management problems inward the Aerospace industry.
Matrix Organisation is a combination of 2 or to a greater extent than organisation structures. For example, Functional Organisation as well as Project Organisation.
The organisation is divided into dissimilar 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 besides divided on the footing of projects e.g. Project A, Project B, etc. Each projection has a Project Manager e.g. Project Influenza A virus subtype H5N1 Manager, Project B Manager, etc.
The employee has to piece of work nether 2 regime (bosses). The authority of the Functional Manager flows downwards field the control of the Project Manager flows across (side wards). So, the control flows downwards as well as across. Therefore, it is called "Matrix Organisation".
An event of matrix organisation is shown inward the next diagram:-
Features of Matrix Organisation
The pecularities or characteristics or features of a matrix organisation are:-
- Hybrid Structure : Matrix organisation is a hybrid structure. This is so, because it is a combination of 2 or to a greater extent than organisation structures. It combines functional organisation with a projection organisation. Therefore, it has the merits as well as demerits of both these organisation structures.
- Functional Manager : The Functional Manager has control over the technical (functional) aspects of the project.
The responsibilities of functional managing director are:-- He decides how to exercise the work.
- He distributes the projection piece of work with his subordinates.
- He looks afterwards the operational aspects.
- Project Manager : The Project managing director has control over the administrative aspects of the project. He has amount control over the fiscal as well as physical resources which he tin forcefulness out utilization for completing the project.
The responsibilities of projection managing director are:-- He decides what to do.
- He is responsible for scheduling the projection work.
- He co-ordinates the activities of the dissimilar functional members.
- He evaluates the projection performance.
- Problem of Unity of Command : In a matrix organisation, in that location is a occupation of the unity of command. This is so, because the subordinates have orders from 2 bosses viz., the Project Manager as well as the Functional Manager. This volition effect inward confusion, disorder, indiscipline, inefficiency, etc. All this volition trim back the productivity as well as profitability of the project.
- Specialisation : In a Matrix organisation, in that location is a specialisation. The projection managing director concentrates on the administrative aspects of the projection field the functional managing director concentrates on the technical aspects of the project.
- Suitability : Matrix organisation is suitable for multi-project organisations. It is mainly used past times large construction companies, that build huge residential as well as commercial projects inward dissimilar places at the same time. Each projection is looked afterwards (handled) past times a projection manager. He is supported past times many functional managers as well as employees of the company.
Advantages of Matrix Organisation
The benefits or merits or advantages of a matrix organisation are:-
- Sound Decisions : In a Matrix Organisation, all decisions are taken past times experts. Therefore, the conclusion are really good.
- Development of Skills : It helps the employees to widen their skills. Marketing people tin forcefulness out larn close finance, Finance people tin forcefulness out larn close marketing, etc.
- Top Management tin forcefulness out concentrate on Strategic Planning : The Top Managers tin forcefulness out pass to a greater extent than fourth dimension on strategic planning. They tin forcefulness out delegate all the routine, repetitive as well as less of import piece of work to the projection managers.
- Responds to Changes inward Environment : Matrix Organisation responds to the negative changes inward the environment. This is because it takes quick decisions.
- Specialisation : In a matrix organisation, in that location is a specialization. The functional managers concentrate on the technical matters field the Project Manager concentrates on the administrative matters of the project.
- Optimum Utilisation of Resources : In the matrix organisation, many projects are run at the same time. Therefore, it makes optimum utilization of the human as well as physical resources. There is no wastage of resources inward a matrix organisation.
- Motivation : In a matrix organisation, the employees piece of work every bit a team. So, they are motivated to perform better.
- Higher Efficiency : The Matrix organisation results inward 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:-
- Increase inward Work Load : In a matrix organisation, piece of work charge is really high. The managers as well as employees non solely have got to exercise their regular work, merely besides have got to handle other additional plant similar aid numerous meetings, etc.
- 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.
- Absence of Unity of Command : In a matrix organisation, in that location is no unity of command. This is because, each subordinate has 2 bosses, viz., Functional Manager as well as Project Manager.
- Difficulty of Balance : In a matrix organisation, it is non tardily to residual the administrative as well as technical matters. It is besides hard to residual the control as well as responsibilities of the projection managing director as well as functional manager.
- Power Struggle : In a matrix organisation, in that location may move a mightiness create exercise betwixt the projection managing director as well as the functional manager. Each 1 looks afterwards his ain interest, which causes conflicts.
- Morale : In a matrix organisation, the morale of the employees is really low. This is because they piece of work on dissimilar projects at dissimilar times.
- Complexity : Matrix organisation is really complex as well as the most hard type of organisation.
- Shifting of Responsibility : If the projection fails, the projection managing director may shift the responsibleness on the functional manager. That is, he volition blame the functional managing director for the failure.