Matrix organizational structure is a type of structure in which the reporting relationships are set up as a grid, or matrix, rather than in the more traditional linear format. This type of structure is a hybrid of two or more types of organizational structures, such as functional, divisional, and flat (Lee, 2021). The matrix structure allows organizations to achieve the benefits of multiple structures while avoiding the drawbacks of each.
In a matrix organization, there are multiple reporting lines or authority lines. The functional manager is responsible for the manager’s overall performance and reports to the functional head. In contrast, the project or product manager is responsible for the specific project or product and reports to the project or product head. This structure allows employees to have multiple bosses, giving them more workplace autonomy and responsibility. A key feature of the matrix structure is the presence of cross-functional teams. These teams typically consist of employees from different departments who are working together on a specific project or task (Lee, 2021). The teams are typically composed of members from different functional areas, such as marketing, finance, and operations. This approach allows for better collaboration and communication between departments, which is vital for the organization’s overall success.
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