What Is A Matrix Organization In Business

The matrix structure offers organizations an effective system for managing projects.

What is a matrix organization in business.

Matrix management is an organizational structure in which some individuals report to more than one supervisor or leader relationships described as solid line or dotted line reporting. The identifying feature of a matrix organization is that some managers report to two bosses rather than to the traditional single boss. Even basically fundamentally functional organizations sometimes create a special team to handle a crucial project. Matrix organization is defined as a complex structure implemented by business organizations.

An organizational structure that facilitates the horizontal flow of skills and information it is used mainly in the management of large projects or product development processes drawing employees from different functional disciplines for assignment to a team without removing them from their respective positions. The matrix organizational structure came about as a business response to the rise of large scale projects. Many substantial business organizations especially the ones engaged in the engineering architectural construction e commerce and large scale manufacturing businesses prefer the matrix structure. Employees in a matrix organization report on day to day performance to the.

There is a dual rather than a single chain of command. A matrix organisation is a structure in which there is more than one line of reporting managers effectively it means that the employees of the organisation have more than one boss. Employees will now have to report to more than one leader for instance both to the product and functional manager. In today s world of business matrix organizations are considerably more common than they used to be forty years ago.

In doing so it defines the mo and describes its operating. Matrix management is commonly used in organizations to share employees and resources across functions. In most cases the business entity follows a hierarchy system but here the reporting relationship is set up as a matrix or a grid. They needed fast track technology applications and required the ability to process great amounts of data in an efficient manner.

This article examines the matrix organization mo. Organizations may fall somewhere in between the pure matrix and the fully functional. More broadly it may also describe the management of cross functional cross business groups and other work models that do not maintain strict vertical business units or silos grouped by function and geography. But it also involves much complexity and demands much communication so that all organizational managers particularly the project and the functional can effectively and efficiently work together.

Reaching higher productivity it has various benefits.