These two types of organizational structures represent the two extreme points

These two types of organizational structures

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These two types of organizational structures represent the two extreme points of a string, while the matrix organization structure is a balance of these two. This combination may help organizations achieve higher efficiency, readiness, and quick market adaptation. Moreover, they often can respond faster to market or customer demand while decreasing the lead time to produce a new product. This type of structure is most suitable for organizations operating in a dynamic environment. However, if any organization is working in a stagnant environment, producing standard products, with customers rarely changing requirements, the matrix structure is not well suited for them. They should adopt the functional or ganization structure.
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79 Matrix Organization Structure According to the PMBOK Guide, the matrix organization is a blend of the projectized and the functional organization structures. The authority of a functional manager flows vertically downwards, and the authority of the project manager flows sideways. Since these authorities flow downward and sideways, this structure is called the matrix organization structure. In a matrix organization structure, employees may report to many managers, and some from one section may report to one boss while the rest report to a different boss. For example; let us say that you are a mechanical engineer working in a functional department. Your organization gets a project and they need a mechanical engineer to assist the project manager on certain tasks. In this case, you may be assigned to the project for a short time, or they may transfer you there while your services are required. If you’re assigned there for a short time, you may have to report to two bosses. The matrix organization structure takes the characteristics of both types of organization structures . The matrix structure is a composite of the projectized organization structure and the functional organization structure . Here the knowledge, skill, or talent of an employee is shared between the functional department and project management team. In a matrix structure, some employees usually work under more than one boss (usually two). The first boss will be their functional manager and the other often is a project manager. The functional manager may look after the functional part of the project; he may decide how to do the work, and may distribute the project work among his subordinates. The project manager will have authority over the administrative part of the project, such as what to do, follow-up on the schedule, evaluate the performance, etc. Working in a matrix organization can be challenging because you have a confusing role while reporting to two bosses. To avoid confusion and work efficiently in a matrix organization, you must be clear on your role and responsibilities and the work priorities.
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