Why matrix organizational structure

This is because, at the time of recession, the economic activity is very low which results in fewer jobs across the country. When there are fewer jobs, people are discouraged to focus on employment which eventually leads to lower participation rate. The participation rate is also important in understanding the unemployment rate in the economy.

Analysing consistently the unemployment rate in the economy is very important. People who are not interested in working or getting some sort of employment are not included in the participation rate, but to understand the unemployment data better, participation rate is considered carefully. An ageing population may have a negative impact on any economy.

That is when the labour participation rate comes into the picture. If the rate is on the higher side, it is a good sign. But if it is on the lower side, it can also act as a warning sign for any economy.

For that reason, participation rate as well as unemployment data should be looked into simultaneously to understand the overall employment status in the economy. Description: The MBTI was developed by Katherine Briggs and is based on the typological theory of Carl Jung who had proposed that there are four essential psychological functions by which we see this world.

These functions are sensation, intuition, feeling, and thinking. All of us rely on one function more than others. The base of MBTI lies in identifying our preferences which are driven through our interests, values, needs, and motivation. Carl Jung came up with this theory through subjective clinical evaluations.

While the theory itself is quite complicated, it essentially categorises you into four types based on where you are most comfortable. You may be an extrovert who likes dealing with people or you might be someone who likes dealing with abstract ideas or information and in that case you would be an introvert.

Similarly, you can like dealing with facts and information with a preference for sensing or you may want to explore the unknown which makes you an intuitive person. The third preference relates to how you make decisions. You either decide objectively or based on gut feelings. Lastly, your lifestyle might be planned and organised or flexible and haphazard.

Definition: A matrix organisation is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss! Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.

It is common in large and multi-project organisations that relocate employees when and where they need them. For smaller businesses with limited resources, organisational structure by function may be more suited. My New Business Northern Ireland business support finder Sample templates, forms, letters, policies and checklists Licence finder Find a case study Do it online.

Breadcrumb Home Guides Grow your business Leading staff through growth Matrix organisational structure. Business organisational structure Matrix organisational structure. What is a matrix organisational structure? Examples of matrix structure Different forms of matrix structure exist. These fall under three main categories, depending on the level of power of the project manager: Functional or weak matrix - the functional manager retains most of the power and is in charge of the people and resources.

The project manager has a minimal role and tends to carry out administrative or coordinating tasks. Their role is part-time, and no administrative staff report to them. Their position is similar to a coordinator or an expediter. In a weak matrix structure, the functional manager controls the project budget.

A weak matrix organizational structure shares characteristics of a functional organizational structure. Big organizations have dynamic environments. They need to respond quickly to customer requirements and market demand, so a matrix structure is suited to them. This allows for better resource utilization and provides experts when needed.

The matrix organizational structure tries to blend the best of both worlds since power-sharing between the project and functional managers changes according to the matrix. Though matrix structure adds complexity, the benefits far outweigh it. I hope this blog post has increased your understanding of the matrix organizational structure. Are you working in an organization with a matrix structure?

Please share your work experience through the comments section. This is an important topic from a PMP exam point of view, and you may see a few questions about it in your exam; therefore, make sure to review this post and feel free to discuss it further in the comments.

I would say that we have a weak matrix structure in that we have virtually no authority over our associates who execute the technology components of our projects. That, after all, is leadership, the art of influencing others so as to obtain their willing cooperation toward the accomplishment of a goal or mission.

Scenario: During the keyword research app project, the project team consists of various IT, marketing, and finance specialists because these team members understand the ins and outs of creating an application for phone users. This team of specialists will likely stick together to work on many projects in the future. Like the hierarchical reporting structure, the matrix organization also has disadvantages. Most of the disadvantages stem from this structure being complex.

While complex designs can have benefits when they work, they also have the potential to cause conflict and make things messy. The complexity of the matrix organization can be a disadvantage because teams may have trouble knowing who to report to and when.

While the intention of the matrix is to benefit teams, it may complicate projects and muddy the overall process. Solution: The best way to prevent a reporting failure is to ensure every member of the matrix understands who to report to and how to do so. Using an intuitive project management platform that facilitates cross-team work can make the matrix structure less complex.

The complexity of the matrix can lead to slow response times, which can delay projects. Slow response times come from the need to report information to multiple people.

Having more people involved is a good thing, but the downside is that relaying information to more people takes time. Solution: Using a project management system will solve the issue of slow response times with the matrix structure. As a central source of truth, Asana can prevent duplicate work and increase visibility among teams and leadership.

While the matrix structure is meant to encourage teamwork, it may do the opposite depending on the personalities involved.

Solution: To prevent conflicting guidance, establish a system that allows managers to interact directly with one another. The main difference between the matrix and hierarchical structure is that team members report to two managers in a matrix structure. This makes the matrix organization more complex and puts more responsibility on team members.

Having two managers can give team members more feedback and guidance, but it can also result in friction. Whether in person or through virtual systems, managers can prevent friction by setting clear project objectives from day one and working together to create a successful product. Most issues that have the potential to arise from the matrix structure can be solved with strong collaboration, communication, and clarity across teams.