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Disadvantages of a Matrix Structure. Businesses weighing the matrix organizational structure pros and cons usually find at least occasional value in using a matrix. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. Line management conflict can be a disadvantage of a matrix organisation. There is a dual authority in a matrix organization. The Cons: Disadvantages and Limitations of Matrix … An employee may find this complexity hard to deal with. It promotes development of managers through … A disadvantage of the matrix structure is the increased complexity in the chain of command when employees are assigned to both functional and project managers. Disadvantages. Matrix organization is more than a matrix structure. This type of organization has a complex structure. A matrix structure allows effective and efficient communication, thus making it advantageous for organizations that depend on knowledge or information sharing. Read on to learn what is a matrix structure diagram, matrix structure diagram examples, and the advantages and disadvantages for both company and staff. d) it is very expensive. This is mainly applied in large projects or product development processes, and hiring employees from different disciplines.. The freedom to collaborate, rather than being isolated in separate departments, may be the strongest benefit in the list of advantages and disadvantages of matrix organizational structure. After providing a brief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. Matrix structures also allow for specialization that can both increase depth of knowledge and assign individuals according to project needs. Matrix organization for a small and large business: An outline, advantages, disadvantages, conclusion. b) authority and responsibilities of managers may overlap, causing conflicts and gaps in effort across units and inconsistencies in priorities. Under this structure, direct contact replaces bureaucracy. The Matrix Organization Structure can deliver this, provided people have the skills to make the matrix work. ii. iii. By working in a matrix organisation the resources are only seconded to the project for limited amount of time. This sometimes can cause conflict if they are asked to carry out tasks from both areas. The matrix structure has the following advantages: i. Disadvantages of Matrix Organization. This is a type of organizational structure which facilitates a horizontal flow of skills and informations. The matrix structure diagram is one of the most commonly used reporting structures that a company can implement to emphasize efficiency, creativity, and innovation. Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). The matrix structure is generally considered the toughest organizational form to work in, due to the conflicting pulls on resources. Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. In addition, the faster flow of information can speed up decision-making. They do still have their Line Manager from their Functional Department. All of the following are disadvantages of a matrix structure EXCEPT: a) it is difficult to explain to employees. c) unity of command is lost. It may be slightly difficult for all the employees to fully understand and integrate themselves into this structure. Matrix structures can help provide both flexibility and balanced decision making, but at the price of complexity. 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