Question

When would a company choose a matrix structure? What are the problems associated with managing this structure, and why might a product-team structure be preferable? Please use examples and elaborate.

Answer 1

The matrix structure is an organizational structure in which reporting structure is similar to a matrix or grid. In this structure, the employees tend to report to dual managers, generally a functional and a product manager. It is a combination of two or more organizational structures.

When would a company choose a matrix structure?

A company may use a matrix structure to cater to large organization or multiple projects. It is useful where employees are deployed in multi-functions as per the project requirements.

What are the problems associated with managing this structure?

The problems associated with matrix structure are:

1. Employee has to report to multiple bosses which can create confusion and chaos. Both functional manager and product managers may have internal conflicts.

2. In the case of a scarce resource, the internal competition within the firm may be counterproductive.

3. Higher workload makes difficulties for the employees. They have to perform their work as well as project work.

4. The structure is expensive to maintain.

5. The non-clarity of job roles may be a confusion in a matrix organization.

Why might a product-team structure be preferable?

A product team structure is preferable as:

1. There is a unity of command and clear job roles

2. The structure is easy to maintain

3. The workload is limited to one job specification

4. The resources are well allocated and hence less conflict is there.