One disadvantage of the matrix is that some employees

One disadvantage of the matrix is that some employees experience dual authority, which is frustrating and
confusing. They need excellent interpersonal and conflict – resolution skills, which may require special training in
human relations. The matrix also forces managers to spend a great deal of time in meetings. If managers do not
adapt to the information and power sharing required by the matrix, the system will not work. Managers must
collaborate with one another rather than rely on vertical authority in decision making. The successful
implementation of one matrix structure occurred at a steel company in Pittsburgh.
This example illustrates the correct use of a matrix structure. The dual pressure to maintain economies of scale and
to market four product lines give equal emphasis to the functional and product hierarchies. Through continuous
meetings for coordination, worldwide steel achieved both economies of scale and flexibility.
Strengths and Weakness of Matrix Organization Structure
Strengths:
1. Achieves coordination necessary to meet dual demands from customers
2. Flexible sharing of human resources across products
3. Suited to complex decisions and frequent changes in unstable environment
4. Provides opportunity for both functional and product skill development
5. Best in medium sized organization with multiple products.
Weaknesses:
1. Causes participant to experience dual authority. Which can be frustrating and confusing
2. Means participants needs good interpersonal skills and extensive training
3. is time consuming involves frequent meetings and conflict resolution sessions
4. will not work unless participants understand it and adopt collegial rather than vertical type
relationship
5. Require great effort to maintain power balance

Organization Theory and Design - MGT504 VU
© Copyright Virtual University of Pakistan 30
Lecture 10
ORGANIZATION STRUCTURE (contd.)
HORIZONTAL STRUCTURE
The most recent approach to organizing is the horizontal structure, which organizes employees around core
processes. All the people who work on a particular process are brought together so that they can easily
communicate and coordinate their efforts and provide value directly to customers. The horizontal structure virtually
eliminates both the vertical hierarchy and old departmental boundaries. Many of today’s organizations are striving to
reduce boundaries both within the organization and with other companies. The horizontal structure is largely a
response to the profound changes that have occurred in the workplace and the
Business environment over the past fifteen to twenty years : Technological process emphasizes computer-based
integration and coordination. Customers except faster and better service and employees want opportunities to use
their minds, learn new skills, and assume greater responsibility. Organizations mired in a vertical mindset have a
hard time meeting these challenges. Thus, numerous organizations have experimented with horizontal mechanisms