Matrix Structure

• The search for better and faster ways to develop products

and meet customer needs led to the matrix structure.
• The matrix structure includes both functional and product
responsibility.
• It is used for a high level of group coordination to respond to
changing conditions.
• The matrix structure is flat with decentralized authority.
Functional employees remain under a functional head, but
work under a product manager.
• The product manager leads the team whose members are
responsible to both functional and product managers.
• Role and authority relationships are ambiguous. Control is
exerted horizontally via teams.
• A matrix is an organic structure.
Matrix Structure
CEO

Vice President Vice President Vice President Vice President Vice President
Engineering Sales and Finance Research and Purchasing
Marketing Development

Product A
Manager

Product B Product Team

Manager

Product C
Manager

Product D
Manager

Two-boss employee
 Matrix Structure
• Although both a product team and matrix structure use
teams, matrix team members have two bosses and team
membership is not fixed.

• Advantages of a Matrix Structure

1. Functional barriers and subunit orientation are reduced.
2. Cross-functional communication allows members to learn and
develop skills.
3. Employee skills are utilized.
4. Employees are concerned about both cost and quality.
 Disadvantages of a Matrix Structure
1. Lack of bureaucratic structure leads to role ambiguity and
role conflict.
2. Teams may fight over resources.
3. Members often refuse transfers to stay with peers.
4. Informal hierarchies emerge in response to uncertainty.
5. Unmet expectations lead managers to increase control
resulting in a taller, bureaucratic structure.
 Multidivisional Matrix Structure
• A multidivisional matrix structure provides for more integration
between corporate and divisional managers and between
divisional managers.
• A matrix design can enhance a multidivisional structure when
placed at the company’s top to increase integration between
corporate and division managers.
• Corporate specialists analyze divisional performance and
design action plans.
• Division heads and corporate executives exchange information
and coordinate activities.
Multidivisional Matrix Structure

CEO

Senior Vice Senior Vice Senior Vice Senior Vice

President President President President
Marketing Finance Research and Materials
Development Management

Automobile
Products
Division

Personal
Computer
Division

Consumer
Electronics
Division