Describe the matrix structure. What are the key reasons for a company to use a matrix structure? What are the disadvantages of a matrix structure?

What will be an ideal response?

In a matrix structure, managers group people and resources in two ways simultaneously: by function and by product. Employees are grouped by functions to allow them to learn from one another and become more skilled and productive. In addition, employees are grouped into product teams in which members of different functions work together to develop a specific product.

Typically, a company uses a matrix structure for three reasons: to develop new products very rapidly, to maximize communication and cooperation among team members, and to promote innovation and creativity.

As you might expect, matrix structures have some disadvantages. Inherent to them are several properties that can cause job dissatisfaction. Matrix structures can increase role conflict and ambiguity, and high levels of stress within them can sometimes ensue. Two bosses making conflicting demands on an employee can cause him or her to feel some role conflict; the very loose system of reporting relationships can make employees vulnerable to role ambiguity. The result is stress. Another source of discomfort for employees is that they might have trouble demonstrating their personal contributions to team performance because they move so often from team to team. For reasons such as these, some people dislike working within a matrix structure.