- 10 Marks
Question
Despite the many advantages associated with the matrix organisational structure which has made its use almost universal, there are also some challenges that confront a firm which adopts it.
Required:
Explain FIVE (5) disadvantages of the matrix organisational structure.
Answer
- Violation of Unity of Command: A major criticism of the matrix organizational structure is that it violates the basic principle of management, which is unity of command since subordinates will have to report to two superiors simultaneously, leading to organizational conflicts.
- Higher Costs: It is often more costly to operate the matrix structure since the workers who constitute the project team are drawn from different functional areas, and the organization will have to spend much more resources on communication, etc.
- Disruption in Departments: Its implementation may lead to situations where departments will be unable to meet set targets because highly efficient employees would have been drafted into a project team.
- Role Conflict: Employees assigned to a project will still be evaluated by their traditional managers, who may now have little chance of assessing their performance, leading to role conflict on the part of subordinates in the performance of their duties.
- Inefficiency: The existence of many managers and a host of procedures may lead to inefficiency in the management of the organization, and possibly lower productivity.
- Tags: Management, Matrix Structure, Organisational Structure
- Level: Level 1
- Topic: Business and Organisational Structure
- Series: NOV 2023
- Uploader: Theophilus