-Efficiently manage large, complex tasks
-Pool of available resources
-Requires high levels of coordination
-Conflict between bosses
-Requires high levels of management skills
violates unity of command
The primary advantage of matrix departmentalization is that it allows companies to efficiently manage large, complex tasks like researching, developing, and marketing pharmaceuticals. Efficiency comes from avoiding duplication. For example, rather than having an entire marketing function for each project, the company simply assigns and reassigns workers from the marketing department as they are needed at various stages of product completion. More specifically, an employee from a department may simultaneously be part of five different ongoing projects, but may only be actively completing work on a few projects at a time. Another advantage is the ability to carry out large, complex tasks. Because of the ability to quickly pull in expert help from all the functional areas of the company, matrix project managers have a much more diverse set of expertise and experience at their disposal than do managers in the other forms of departmentalization.
The primary disadvantage of matrix departmentalization is the high level of coordination required to manage the complexity involved with running large, ongoing projects at various levels of completion. Matrix structures are notorious for confusion and conflict between project bosses, or between project and functional bosses. Disagreements or misunderstanding about project schedules, budgets, available resources, and the availability of employees with particular functional expertise are common. Another disadvantage is that matrix structures require much more management skill than the other forms of departmentalization.
Because of these problems, many matrix structures evolve from the simple matrix, in which project and functional managers negotiate conflicts and resources, to the complex matrix, in which specialized matrix managers and departments are added to the organizational structure. In the complex matrix, project and functional managers report to the same matrix manager, who helps them sort out conflicts and problems.