What are the benefits and limitations of a Matrix Structure in businesses?
Benefits
+ Efficient information exchange: departments work closely together and communicate with each other to solve issues = enhances productivity and allows quick decision making
+ Flexibility: specialized information is changed quickly to respond to needs of customers and the organization
+ Increases motivation: the ability to contribute information before decisions are made = empowerment; feeling of being valuable = motivation
Limitation
- Internal complexity: confusion of who is ones direct supervisor, one may receive different directions about the same thing. Causes division between employees and manager; miscommunication; dissatisfaction of employees
- Internal conflicts: sharing of employees may cause rivalry between managers. Causes hostility in workforce; decrease in productivity
- Expenses: expensive to maintain due to double management
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