The matrix organization is an attempt to combine the advantages of the pure functional structure and the product organizational structure. Project managers usually use the matrix organization, and large projects enjoy the matrix organization. The advantages of the matrix organization are 1) people can be shared, and the project cost are minimal, 2) conflicts are minimized, 3) time, cost, and performance are better balanced, 4) stress is dispersed among members, and 5) authority and responsibility is equal. In the matrix organization, different people from different positions are put into one team for an assignment without having to leave their primary position, for example engineers, accountants, and marketers. The employees have to report to the managers or superiors on a day-to-day basis to update on the assignment. Through the matrix organization, there are multiple control and command structures. The matrix organization allows members to share information and enjoys specialization.
However, some of the controversies with the matrix organization involve loyalty, confusion, and the use of the organization for today's society. Some opponents say that there are loyalty conflicts that have the workers unsure of the positions hierarchy. People may not be sure of who is the authority and who has certain leadership since all workers are specialized in their specific fields. Also, because the workers are specialized, confusion on what to do and how to distribute the information found may be unsure to those in the team. Since those who are not majored in certain aspects, they may not fully understand a concept or may understand the information differently. Lastly, opponents argue that the matrix organization may be outdated.
Sources: http://www.visitask.com/matrix-organization.asp
http://www.businessdictionary.com/definition/matrix-organization.html
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On the issue of loyalty, the project manager might run into conflicts of sharing specific information with one department head and not the other. This can cause confusino, which lead to ineffectiveness on the project as a whole. To get credit for an idea, one department manager might tell the project manager to only report to them and not the other manager. This creates rivalry amongst the different departments and renders the matrix unsuccessful in promoting communication and collaboration.
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