Describe the matrix organization, and discuss its pros and cons.

Question

What will be an ideal response?

Answer 1

Answer: A matrix organization is a hybrid form of organization in which functional and divisional forms overlap. Managers and staff personnel report to two bosses—a functional manager and a divisional manager. Thus, matrix organizations have a dual rather than a single line of command. Pros include the fact that employees are linked at all levels and in all functions to the company's goals and strategy; more information is shared across functions; communication is fostered, which is especially valuable for complex assignments where different groups depend on each other; there is greater responsiveness to customers due to bringing together information about customer needs and organizational capabilities; creative ideas arise from cross-functional work; and loyalty to the organization as a whole, rather than to a function or division, is encouraged. Cons include unclear responsibilities and competing priorities, potential violation of the unity-of-command principle, difficulties in defining accountability, lower employee engagement, possible conflict and stress for employees who must manage a dual reporting role, additional time required for meetings and other communications to coordinate work, and the fact that extensive collaboration is needed but not always easy to reward.