Matrix Organization

Description of Matrix Organization. Explanation.

Definition Matrix Organization. Description.

A Matrix Organization is an organization structure that is matrix-shaped. It has 2 axes, rather than a pyramid-shape. The vertical hierarchy is overlaid by some form of lateral authority, influence, or communication and there are dual lines of authority, responsibility, and accountability that violate the traditional "one-boss" or "Unity of Command" (Fayol) principle of management.

Typically, but not necessarily, it has product groups on the vertical axis and Strategic Business Units on the horizontal axis.

Teams of functional personnel (e.g., manufacturing, research and development, finance, and sales) report to a manager with profit responsibility bearing a title such as business manager, category manager, or new product manager. The functional personnel also report to their functional bosses, who are responsible for maintaining the quality of functional performance.

The Matrix Organization is at the center of a continuum between purely functional type organizations and purely product type organizations. On the functional end of this continuum is the traditional hierarchical structure divided along functional, lines such as marketing, production, and accounting. On the other end of this continuum is the pure product organization. Here, a separate team is formed, duplicating the functional structure but organized under a product manager.

Compare also: Organization Chart  |  Hierarchical Organization  |  Organizational Configurations

Return to Management Hub: Change & Organization

More Management Methods, Models and Theory  |  Return to Management Dictionary  | 

End of description Matrix Organization. An explanation.