Matrix structure diagram is one of the most commonly used reporting structures a company can implement to emphasize efficiency, creativity and innovation. Read on to learn what is a matrix structure diagram, matrix structure diagram examples and the advantages and disadvantages for both company and staff.
Overview of Matrix Structure Diagram
Matrix Structure Diagram, is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. It is often used when the firm has to be highly responsive to a rapidly changing external environment.
Advantages & Disadvantages of Matrix Structure Diagram
Matrix Structure Diagram Advantages:
- Better coordination and control
- Adaptable to dynamic environment
- Maximum use of resources
- Participative management
- Sufficient time to top management
Matrix Structure Diagram Disadvantages:
- Difficult in balance: a conflict of loyalty between line managers and project managers over the allocation of resources.
- Costly structure: costs can be increased if more managers (ie project managers) are created through the use of project teams.
Matrix Structure Diagram Examples
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