This paper provides a comparison between project organizational structure and matrix organizational structure. Project organizational structure refers to an essential configuration that helps to determine the hierarchy of individuals within this organization. Moreover, it outlines their functions and workflow. Consequently, this structure contains a reporting system that helps to guide the fundamental role of the organization. Matrix organizational structure on the other hand involves a format in which employees report to two or more managers. For instance, there is a departmental manager to whom the employees report to and there is also a team manager to whom the employees report to as well.
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ADVANTAGES OF PROJECT ORGANIZATIONAL STRUCTURE
A project organizational structure comes about with various advantages that include the following. Firstly, it helps in the management of small teams since the structure has full control of the members and the resources. Secondly, just like the matrix organizational structure, it allows for easy access to the various experts since they are all in the same functioning area. Thirdly, it allows for quick and easy assembling of people hence they can effectively resolve problems relating to the project. Moreover, it allows the limiting of tools necessary for communication. This is because the team is relatively small and simple thus easier to mobilize. Lastly, it provides the team members with career opportunities.
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DISADVANTAGES OF MATRIX ORGANIZATIONAL STRUCTURE
The matrix organizational structure has some disadvantages. Firstly, it reduces employee effectiveness since the employees work under several managers, they are bound to have many tasks. Consequently, it increases ambiguity thus reducing their effectiveness. Secondly, unlike project management structure, it often leads to authority confusion. Since the employees work under several managers, there is the likelihood of the managers opposing each other thus giving confusing instructions to the team. Nevertheless, this structure leads to an increased management overhead cost. This is because multiple managers are put in place to run a certain task. As a result, there is a need to pay off these managers thus increasing the company’s overall budget.
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