Matrix organizational structure vs functional

An organization can be arranged according to a variety of structures, which enable the organization to operate and perform. Its objective is to carry out operations smoothly and efficiently. The key difference between matrix structure and functional structure is that matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions whereas functional structure is a structure that divides the organization based on specialize. See full list on differencebetween.

The matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions. This means that a matrix structure combines two organizational structures, most commonly a functional structure and a divisional structure.

By nature, the matrix structure is inherently complex and costly to implement making them appropriate for large scale organizations that generally undertake various projects. OPQ is a multinational company that p. Each function is managed by a departmental head that has a dual responsibility to be accountable to the top management and to direct the respective department to achieve favorable performance. Such functional areas are also referred to as ‘silos’.

The difference between matrix structure and functional structure mainly depends on the way they are structured and managed. For organizations that are significant in scale with many product groups, a matrix structure is ideal for management purpose. If the organization is small or medium scale and has less diverse operations, then adopting a functional structure is appropriate.

Proper chain of command and effective allocation of resources lead to higher employee motivation and cost savings.

Imagine yourself among the top management of a global soft drinks producing corporation, Sunny Coast. Your company supplies a variety of products — juices, lemonades and mineral water to the supermarkets all around the country. A range of products is packaged in factories and distributed to the warehouses on daily basis, while the marketing team tirelessly comes up with promotions to improve the sales of the product line. All of these are the operations of the company.

At the same time, the c. The first alternative that you have is to deliver the project in a functional organization. Under this scenario, the responsibility for the project will be assigned to a senior manager from the department that will be most involved in the project, in this case, the production department. The chosen manager, also known as a functional manager, will have to act as a project manager, carry out project planning and liaise with colleagues from other departments, such as the marketing and finance d. An alternative organization structure that you might prefer for the project delivery is known as matrix organization. Using this approach, you would assign a dedicated project manager on the project, instead of a functional manager.

There will be two chains of command on the project and two managers will have work collaboratively to ensure successful project delivery. Employees working on the project will still have to juggle between routine and project tasks, however, they will report to dif. Flat Organizational structures define the hierarchy or an organization , and determine the way information flows within it. When establishing a structure , business leaders should decide how a structure best aligns with the company’s principles and goals and how it. You can test out of the The third type of organization is a matrix organization , which is a blend of functional and projectized organizational structure.

A weak matrix will be sot similar to the functional organization , as a project manager will have limited decision-making power and will act as a task coordinator, whether as a strong matrix will give him or her the most authority. Matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions.

What is an example of a functional organizational structure? What are the benefits of a matrix organization? In a traditional hierarchy, people in the company report to just one boss. To fully understand them, we must first explain the two different approaches they bring together.

You’ve most likely worked at a company that uses this system. A functional organizational structure is the most common. The project manager has full authority on the project budget.

The strong matrix organization structure has the characteristics of the projectized structure. It is a mix of two or more organizational structures. This combination helps organizations achieve higher efficiency, readiness, and market adaptation.

Communications are open, which helps knowledge move throughout the organization with less obstruction. Individuals, regardless of which part of the organization they belong to, will have to report to different departments in order to complete a task or a project. A matrix structure is, strictly speaking, where we have multiple bosses – more than one formal reporting line, whether solid or dotted. However, the term matrix is often used for anywhere where we are working ‘horizontally’ across the traditional ‘vertical’ silos of function, geography or other organizational units, such as working.

Project manager’s role is only part-time. Matrix organizational structure: In a matrix structure, the organization is grouped by both product and function. Product lines are managed horizontally and functions are managed vertically.

This means that each function—e. Functional manager manages the project budget.