Matrix Organizational Structure


Matrix Organization

An organizational structure that facilitates the both horizontal as well as vertical flow of skills and information, referred as matrix structure, also called grid structure or project structure. Mainly used for managing large products like product development processes, arranging mega events, etc.  In this management structure we have to assign different duties and responsibilities to execute a project to the individuals working in different departments without removing them from their respective positions.  

For Example

   President



                 V.P                                 V.P                    V.P
               Manufacturing                R&D               Sales





Project Manager                   Product A                   Product A                   Product A
Product A                               Manufacturing           R&D                            Sales


Product Manager                  Product B                  Product B                  Product B
Product B                                Manufacturing           R&D                            Sales



In matrix structure we have:

1.      Top Management like President, CEO, etc who has to look after the whole structure
2.      Two Matrix Managers, one is the head of specific technical department like, R&D, Manufacturing and sales, second is project manager.
3.      Employees who are headed by both project manager and their respective departmental heads and having dual reporting responsibilities. They comes into communication with project manager for project activities like planning, execution, etc and project manager also exercise administrative authority over people in team for all matters, hence formulating horizontal flow of relationship. And they also come into communication with their respective departmental head for technical reasons that ensure adequate technical supervision and support and hence formulating vertical flow of relationships.

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