A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. Communication is smooth across the boundaries. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of skillsets that are often spread across the business. Although the project-oriented and functional structures are at opposite ends of the spectrum, it is possible to be located somewhere in between (a hybrid). An organizational chart has different types depending on the structure of the organization, namely functional, divisional, matrix, and flatarchy. Copy of Hospital Matrix Organizational Chart--You can edit this template and create your own diagram. This article examines the matrix organization (MO). In this specific type of structure, two types of structures are combined into a single, cohesive structure, resulting in a dual-authority system. The matrix structure followed by Starbucks coffee is one of the best organizational structure examples. Different organizational structures that combine to form Starbuck’s matrix structure are divisional structure, functional structure, and team-based structure. Organizational - You can think of a divisional organizational structure as a structure that's comprised of multiple, smaller functional structures (i.e. To some extent, the matrix organizational structure is a combination of two or more types of basic organizational structures. Organizational Structure: do you even need to formalize it when you have a relatively small business? Source. In Matrix organizations, the team members report to their project manager and also to their functional managers. It incorporates several levels of authority and management by grouping the employees under capable supervision. The organizational structure also determines how information flows between levels within the company. This article discusses matrix organizational structure advantages and disadvantages. You may also see price chart examples and samples . Apart from hierarchy, the employees develop their own projects and organize a team to work on them, so the workers usually have to report their work to two supervisors -- the functional manager and the project manager. Each division than has it own functional structure like IT and marketing. A matrix structure may be most appropriate when organizations have numerous products or projects that draw on common functional expertise. In this case, the structural design involves intersections among various components of the business. The matrix organizational structure is merely one of the several modern organization designs that came about in recent years in order to accommodate the constantly changing landscape of business and organizations. This means that each function—e.g., research, production, sales, and finance—has separate internal divisions for each product. For example, at an engineering firm the geotechnical department is available as an expert resource to all projects within the firm. Therefore, Matrix Organization aims to get the benefits from these two previous organizational structures. Creating an organization chart is not that hard. Here the knowledge, skill and talent of an employee is shared between the functional department and project management. A matrix type of organisational structure combines the traditional departments seen in functional structures with project teams. A company will use a divisional set up like this when one division is sufficiently independent from another, however this kind of structure can also add some accounting and other overhead. Use PDF export for high quality prints and SVG export for large sharp images or embed your diagrams anywhere with the Creately viewer. Matrix organizational structure: In a matrix structure, the organization is grouped by both product and function. There are no easy answers to deep-rooted organizational dysfunction. Matrix organizational structure also allows them to transfer skills to the other participant workers to the areas that are and this in turns help when desperation of skills workes are in demand in certain areas. The matrix structure offers organizations an effective system for managing projects. Starbucks has a matrix organizational structure, which is a hybrid mixture of different features from the basic types of organizational structure. Matrix organization is more than a matrix structure. The main benefit of matrix organization is that highly skilled and capable resources can be shared between the functional units and important strategic projects. Matrix Organizational Chart. It is a good environment for professionals to develop their career. Because their actual managers are their functional manager. Matrix Org Chart Example (Click on image to modify online) A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for special projects. Spans of control grew, unity of command In a matrix structure, individuals work across teams and projects as well as within their own department or function. A matrix organisational structure doesn't follow the traditional, hierarchical model. It’s best suited for work environments that are dynamic, as hybrid structures shift from project to project and move resources around to meet a particular goal. The matrix structure incorporates aspects of a functional and divisional organizational structure all in one. A matrix structure is a combination of two or more types of organisational structures. Matrix organizational structure is one of the most complicated reporting structure a company can implement, however, the simple design make your presentation easy and comprehensive. What is a matrix organisational structure? Matrix structures can help provide both flexibility and balanced decision making, but at the price of complexity. Matrix organizational structure examples and templates. Organizational charts are visual tools used by managers to help illustrate the roles and an organization’s hierarchy. For example, if a project is about to end and a new one is about to begin, resources can be transferred from the former to the latter. Functional structure divides the organization based on specialized functional areas such as production, marketing, and sales for the purpose of management. Source: Matrix Organizational PowerPoint template. Matrix Management Structure Example. Product lines are managed horizontally and functions are managed vertically. An employee may have vertical and horizontal reporting lines. But it also involves much complexity and demands much communication so that all organizational managers--particularly the project and the functional--can effectively and efficiently work together. Matrix organizational structure PowerPoint template and keynote slide is a simple org chart for presenting organizations work structure and hierarchy. If they are assigned to a project, they will be reporting to their project manager as well. The primary reason for the firm’s success is its structure. Now that we’re aware of some of the pros and cons, let’s take a look at a real-life matrix management structure example. Large business organizations, governments, military organizations, and organized religious groups are some prominent examples that follow a hierarchical structure. Advantages: A Matrix structure can help in a more flexible working environment and open communication between employees, as well as provides the utility to switch resources according to need. Definition: A matrix organizational structure is the arrangement of the personnel, i.e., the matrix leader, managers and employees, across the grid, such that a hybrid hierarchy is maintained.Here, there is a vertical and horizontal flow of direction and information, such that each subordinate has dual bosses. Creately diagrams can be exported and added to Word, PPT (powerpoint), Excel, Visio or any other document. For example, an engineer may regularly belong to the engineering department (led by an engineering director) but work on a temporary project (led by a project manager). Matrix vs Functional Organization: Matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions. The matrix organizational chart combines traditional organizational structures. For example, in a car company the divisions may represent SUVs, sedans, and electric cars. The matrix organization structure is blend of projectized organization and the functional organization and takes the best of the both world. It integrates the top down vertical organizational structure that highlights reporting relationships, with the flexibility of a flat organizational structure where cross-department teams report to project managers. Also, an employee may be part of multiple departments and may have multiple managers. It allows for the efficient use of limited resources, but it’s not the answer to every situation. In the matrix structure, you share resources and staff across teams and projects, as well as within departments or functions. Advantages of the Matrix Organizational Structure. Matrix . In matrix organization, some employee usually work under more than one boss. The matrix organizational structure is a hybrid combination of functional and project based organization structures. The matrix structure flew in the face of many of the organizational principles outlined by the early management writers. The fundamental rationale underlying a matrix structure is to organize around problems to be solved rather than functions, products, or geography. The first boss will be their functional manager and … Out of these, one is the functional manager; and the other is the project manager. 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