Let's have a session on matrix structures. So matrix structures are organizational structures where the employees report to both. Both, number one, the functional area, manager, so we're thinking about those functional areas being HR, finance, marketing, and operations, and also, also the project manager.
So they have two managers in a matrix structure. Now a matrix structure sometimes is shown as a grid, as so, where we've got At the top, the vertical lines in pink, where you've got the four functional areas, HR, finance, marketing and ops operations. And then moving horizontally to those vertical lines, so horizontally with the brown lines, is the different projects in the organisation.
Here we have three projects, project A, B and C. And you can see that the black dot symbolises a person within this matrix structure that might be within the finance department, but also working on project B.. Now matrix structures are used by large corporations, multinational corporations, and they're often involved in complex dynamic projects. We're thinking dynamic in terms of the fact that they're constantly evolving, there's huge uncertainty within those projects, and therefore it makes sense to have these matrix structures in play.
Usually it's technology businesses and engineering businesses that will utilize matrix structures. Now the advantages, the pros of matrix structures. Well it's likely to increase the flexibility of the organisation. We're thinking unit 10 here for AQA A level.
So increase the flexibility of the organisation. That might adapt, that means they can adapt quickly to changing market conditions, changing project needs, and therefore you can reallocate your resources accordingly. Now secondly, higher efficiency.
as a result of matrix structures. Why? Because of the expertise and the skills can be moved across and shared across the projects and that's going to increase the productivity and therefore the efficiency.
Number three is there's increased collaboration amongst those functional areas and therefore projects have a holistic view looking at the whole of the organization because it's got all of the functional areas involved and that might ensure that you are making more of a success of your project. Now on the disadvantageous side of matrix structures, well, we think about that black door earlier on in the finance department in project B. Employees might be unclear to who and what the priority is. For this person here, is the priority finance or project B? And that could lead to power struggles.
It could lead to conflict, and that's not good for an organizational. It might be between the functional area and, of course, the project. Now, number one and number two could be linked with employee burnout as they constantly get frustrated with... who do they report to in finance or project b who's the bigger person here who's the more important person and that burnout is actually the final phase of the grinder model that's a model that's been removed 2024 from the specification but i still think it's useful in terms of looking at that so click the card up there good for wider reading Now thirdly, in terms of disadvantages of matrix structures, well, it might slow down the communication, slow down the project itself.
And the reason why is because you've got too many stakeholders. It might be that project B has got the project manager and then also got each of the functional areas. So that's five different areas there, four plus one, in terms of the different stakeholders that are coming to meetings, logging on to meetings, attending meetings, and that can just slow down the communication of the project. I hope that helps.
I'll see you at the next sesh.