What are pros and cons of using matrix or virtual organizations?
In a matrix organizational structure, employees report to different manager. This creates a complex reporting relationship. The matrix structure focuses on projects and team participation. Advantages of the matrix structure include a project focus, flexibility among team members, and the development of staff for leadership roles. The disadvantages to the matrix system include confusion among reporting relationships, difficulty in reprimanding or terminating employees, and lack of an individual focus.
A virtual organizational structure exists in the information technology realm. However, the organizational structure may not exist physically. Advantages of this type of organizational include that the organization is not limited by space and time. Individuals may work at multiple locations all working toward a common goal for the organization. Employee autonomy is another advantage. Disadvantages include lack of employee supervision, communication issues among employees, and lack of cohesion among the work group.