Where there are conflicts of interests, the quality of decision-making is enhanced by matrix structure. They do still have their Line Manager from their Functional Department. The matrix structure has the following advantages: i. There is a dual authority in a matrix organization. A disadvantage of the matrix structure is the increased complexity in the chain of command when employees are assigned to both functional and project managers. Disadvantages. d) it is very expensive. Disadvantages of a Matrix Structure. The freedom to collaborate, rather than being isolated in separate departments, may be the strongest benefit in the list of advantages and disadvantages of matrix organizational structure. The Cons: Disadvantages and Limitations of Matrix … Businesses weighing the matrix organizational structure pros and cons usually find at least occasional value in using a matrix. Under this structure, direct contact replaces bureaucracy. Matrix organization for a small and large business: An outline, advantages, disadvantages, conclusion. By working in a matrix organisation the resources are only seconded to the project for limited amount of time. Line management conflict can be a disadvantage of a matrix organisation. In addition, the faster flow of information can speed up decision-making. After providing a brief introduction into the discipline, it identifies and discusses eight major characteristics of matrix organizations. It may be slightly difficult for all the employees to fully understand and integrate themselves into this structure. iii. All of the following are disadvantages of a matrix structure EXCEPT: a) it is difficult to explain to employees. The Matrix Organization Structure can deliver this, provided people have the skills to make the matrix work. Disadvantages of Matrix Organization. The matrix structure diagram is one of the most commonly used reporting structures that a company can implement to emphasize efficiency, creativity, and innovation. This type of organization has a complex structure. Matrix structures can help provide both flexibility and balanced decision making, but at the price of complexity. Organizational structure: types of organizational structures (line organizations, line-and-Stuff organizations, committee and matrix organization). c) unity of command is lost. This is a type of organizational structure which facilitates a horizontal flow of skills and informations. ii. The article is a review of the literature on the key advantages and disadvantages of matrix organizational structures. b) authority and responsibilities of managers may overlap, causing conflicts and gaps in effort across units and inconsistencies in priorities. This sometimes can cause conflict if they are asked to carry out tasks from both areas. 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