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Matrix Structure Organisation

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A Matrix structure organisation contains teams of people created from various sections of the business. These teams will be created for the purposes of a specific project and will be led by a project manager. Often the team will only exist for the duration of the project and matrix structures are usually deployed to develop new products and services.The basis for the matrix organization is an endeavor to create synergism through shared responsibility between project and functional management. The advantages of a matrix include Individuals can be chosen according to the needs of the project. The use of a project team which is dynamic and able to view problems in a different way as specialists have been brought together in a new environment. Project managers are directly responsible for completing the project within a specific deadline and budget. Because key people can be shared, the project cost is minimized. Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved. There is a better balance between time, cost and performance. Authority and responsibility are shared. Stress is distributed among the team. It attempts to retain the benefits of both structures ( functional organization and project team structure ). · Coordinates resources in a way that applies them effectively to different projects. · Staff can retain membership on teams and their functional department colleagues.
While the disadvantages include A conflict of loyalty between line managers and project managers over the allocation of resources. If teams have a lot of independence can be difficult to monitor. Costs can be increased if more managers (ie project managers) are created through the use of project teams. Potential for conflict between functional vs. project groups. Greater administrative

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