Matrix Structure Business

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.

Matrix structure business. In most cases the business entity follows a hierarchy system but here the reporting relationship is set up as a matrix or a grid. It is a way of arranging your business so that you set up reporting relationships as a grid or a matrix rather than in the traditional hierarchy. Additionally the matrix structure is composed of both a traditional hierarchy of management where employees are managed by a functional manager as well as additional project managers who can manage employees across different departments.

Functional structure is a permanent feature of the matrix organisation and retains authority for the overall operation of the functional units. A matrix type of organisational structure combines the traditional departments seen in functional structures with project teams. The matrix developed as a natural evolution of organizational structures in answer to a very definite real-world need.

A matrix organizational structure is a workplace format in which employees report to two or more managers rather than one manager overseeing every aspect of a project. For example a project or task team established to develop a new product might include engineers and design specialists as well as those with marketing financial personnel and production skills. The need was for an organizational form capable of managing the recent very large and very complex programs projects and problems and for managing limited resources.

Matrix organization is defined as a complex structure implemented by business organizations. Traditionally business owners have arranged people in a triangular hierarchy that has the. Usually there are two chains of command where project team members have two bosses or managers.

It breaks the monotony and gives more flexibility to the organisation. Matrix organisation also called grid organisation is a hybrid structure combining two complementary structures namely functional departmentation with pure project structure. In view of the fact that most parts of the company would have a double.

A matrix structure is an example of hard-wiring because the two bosses of a manager in a matrixed position have the joint responsibility to set his objectives supervise his work do his. One of the bosses is the manager who has authority due to vertical hierarchy. Matrix Structure With a companys growth comes the need to organize tasks and the people who do them.