The matrix structure superimposes the product structure laterally over the functional structure recommended reading. The matrix structure has three distinctive components 1. Concepts and f0rmats when two or more people work together to achieve a group result, it is an organization. Since these authorities flow downward and sideways, this structure is called the matrix organization structure. The matrix organization project management institute. As per the pmbok guide, the matrix organization is a combination of the projectized and the functional structures. It vertically structures each department with roles from president to finance and sales departments, to customer service, to employees assigned to one product or service.
As it acquired each small company, top management first encouraged the owners and general managers. A functional organizational structure is a structure used to organize workers. In a matrix structure, reporting channels form a grid, and employees typically report to both a functional manager as well as a product manager. Best practices in matrix organizational structures gssa georgia. Difference between matrix and functional structure. It is formulated with the desire to maximize the strengths and minimizing the weakness of the both structures. Remedies of functional and operational issues will make up section 5 while the paper. It entails achieving a functional and product or process focus. Though matrix organizational structures have been implemented since the late 1970s, their. But it also involves much complexity and demands much communication so that all organizational managersparticularly the project and the functionalcan effectively and efficiently work together. The table below outlines the interplay between these two dimensions in a matrix organizational structure. The structures diagrammed and described are functional, product, customer, geographic, divisional or mform, matrix, amorphous, and hybrids. Essentially, the organization used a functional structure. A company will choose their organizational structure based on.
The result is creation of dual line of authority that is balanced by top managers. Matrix structures combine the benefits of traditional functional and product. The matrix is thus a multidimensional structure that tries to maximize the strengths and minimize the weaknesses of both the project and the functional structures. In many organizations, a combination of these forms is used. They are grouped based on their specific skills and knowledge.
The authority of a functional manager moves vertically downwards, and the authority of the project manager moves sideways. Functional structure divides the organization based on specialized functional areas such as production, marketing, and sales for the purpose of management. Organizational structure is a way or method by which organizational activities are divided, organized and coordinated. A matrix organisation combines traditional functional hierarchy i. However, as companies continue to evolve and increase. The future will likely bring functional, product and matrix organizational structures. The matrix structure offers organizations an effective system for managing projects. A matrix is an organizational structure that shares power among two or more dimensions. While a functional organization structure may be more common in long established companies, a matrix organizational structure could benefit startups since its.