Matrix Organization and Virtual Organization - Features and Challenges (Management video 6)

Matrix Organization refers to the organizational structure which has more than one line of reporting managers and multiple chains of command.

Matrix Organization often includes two or more structures like project organization and functional organization.

Features of Matrix Organization

• Hybrid structure as it aligns two or more structures
• The authority of the functional manager is absolute
• Project manager has authority over administrative aspects
• Helps to achieve Specialization
• Suitable for organizations dealing in multiple projects at the same time

Example of Matrix Organization
1. L’OREAL
2. Infosys

Virtual Organization

Virtual Organization refers to the temporary network of organizational units, groups or individuals with core competencies that align together to exploit opportunities.

In a Virtual Organization, the stakeholders share costs and skills and contribute to the best of their abilities.

Features of Virtual Organization

• No need for a separate entity
• The use of ICT is high
• Temporary in nature as it is dissolved after the purpose is fulfilled
• High efficiency and excellence
• Full support from top management

Virtual Teams

A virtual Team refers to the group of individuals working across space, time, and organizational boundaries with help of communication technology.

Virtual Team, also known as Geographically Dispersed Team, collaborate various information technologies while located at different locations.

Challenges faced by Virtual teams

• Lack of effective communication
• Quality of leadership has a direct impact on the project
• Difficult to build trust and manage conflict in the absence of face-to-face interaction
• Challenges in the decision-making process
• Different time zones make communication difficult

This video is on Matrix Organization and Virtual Organization and it has the following sub-topics.

Time Stamps
0:00 Introduction to Matrix Organization and Virtual Organization
00:45 Features of Matrix Organization
01:50 Example of Matrix Organization
02:56 Virtual Organization
03:29 Features of Virtual Organization
04:16 Virtual Teams
04:59 Challenges faced by Virtual teams