MATRIX ORGANIZATIONAL STRUCTURE

By: Sushant Patil Vikram Bidarur Rudramuniswami Patil Vinayak Khadbadi

Introduction
Matrix Organization structure is in which functional and staff personnel are combined to emphasize on some project or program. This is used to make the best use of talented people within a firm.
For

example: A product development project needs a market research specialist for two months and a financial analyst one day per week.

It is temporary.
People have to report to two bosses.
One being the head of the department in which they are working The leader or coordinator of the project on which they are working.

It starts from the head of the company, and then goes down to different department heads in the organization. It provides dual channels of:
Performance Authority. Evaluation. Control.

Responsibility.

How it works ?

Simply

Companies having Matrix Organizational Structure Microsoft Dow Chemicals Matushita (Panasonic) Daimler-Chrysler

Advantages
Can make the best use of talented managers. Better cooperation across different departments. Improved decision making. Increased flexibility. Better customer service. Improved strategic management.

Disadvantages
Creates confusion (Two boss system) and can result in contradictory policies. Increases management responsibilities. Increases costs of adding employees as project managers.

Thank you