Matrix structures (2024)

A matrix type of organisational structure combines the traditional departments seen in functional structures with project teams.

In a matrix structure, individuals work across teams and projects as well as within their own department or function.

For example, a project or task team established to develop a new product might include engineers and design specialists as well as those with marketing, financial, personnel and production skills.

These teams can be temporary or permanent depending on the tasks they are asked to complete. Each team member can find himself/herself with two managers - their normal functional manager as well as the team leader of the project.

An example of a matrix structure is illustrated below:

Matrix structures (1)

Matrix structures have advantages and disadvantages.

Advantages

  • Can help to break down traditional department barriers, improving communication across the entire organisation
  • Can allow individuals to use particular skills within a variety of contexts
  • Avoid the need for several departments to meet regularly, so reducing costs and improving coordination
  • Likely to result in greater motivation amongst the team members
  • Encourages cross-fertilisation of ideas across departments – e.g. helping to share good practice and ideas
  • A good way of sharing resources across departments – which can make a project more cost-effective

Disadvantages

  • Members of project teams may have divided loyalties as they report to two line managers. Equally, this scenario can put project team members under a heavy pressure of work.
  • There may not be a clear line of accountability for project teams given the complex nature of matrix structures.
  • Difficult to co-ordinate
  • It takes time for matrix team members to get used to working in this kind of structure
  • Team members may neglect their functional responsibilities

It is important to remember that a matrix structure often sites alongside a traditional functional structure – it is not necessarily a replacement.

Matrix structures (2024)

FAQs

Matrix structures? ›

A matrix organization is a company structure where teams report to multiple leaders. The matrix design keeps open communication between teams and can help companies create more innovative products and services. Using this structure prevents teams from needing to realign every time a new project begins.

What is matrix basic structure? ›

Matrix is an arrangement of numbers into rows and columns. Make your first introduction with matrices and learn about their dimensions and elements. A matrix is a rectangular arrangement of numbers into rows and columns. For example, matrix ‍ has two rows and three columns.

Why does Nike use a matrix structure? ›

Nike's organizational structure follows a matrix chart approach, which divides authority horizontally and vertically. The company follows a regionalized business strategy. It focuses on meeting market-specific apparel, footwear, and equipment demand.

What is a matrix structure in higher business? ›

Matrix structure is often used when cross-functional. teams are created to run a project. Team members may come from different disciplines. The team will disband when the project is complete.

What is a matrix structure in agile? ›

In simple terms, a matrix organization is an organization where vertical projects are staffed with several individuals from different parts of the company belonging to several different departments. This approach is extremely common nowadays when companies start to implement Agile.

What is a matrix layout? ›

Matrix layouts have data selection criteria associated with columns and rows in the spreadsheet, creating a criteria matrix. The data retrieved for an individual cell is determined by combining the criteria for its column and row.

What is the purpose of a matrix system? ›

A matrix system provides and takes the place of the proximal tooth surface that was removed to restore the proximal contours and contact to their normal shape and function.

Does Starbucks use a matrix structure? ›

Starbucks adopts a matrix organizational structure, combining functional and divisional aspects. The functional structure represents different departments or functions within the company, such as Operations, Finance, Marketing, Human Resources, and Legal.

What is the biggest advantage to the matrix structure? ›

Perhaps the biggest advantage of a matrix structure is that it brings together highly skilled team members from different departments, allowing the organization to capitalize on the resources it already has rather than seeking expertise and recruiting project team members from outside of the organization.

Why would a company choose a matrix structure? ›

The advantages of a matrix organisational structure

improve communication across the business. allow staff to apply their skills in different roles. help share best practice and ideas across teams. increase efficiencies due to sharing resources across departments.

What is an example of a business with a matrix structure? ›

Nike is one famous example of a matrix structure organization, as the company has functional teams like HR and Merchandising as well as divisional teams based on both product and geographic region.

What are the three types of matrix structures? ›

There are three different types of matrix organizations that differ according to the level of authority assigned to functional and project managers. The three types are a weak matrix, balanced matrix and strong matrix.

Why is Coca Cola a matrix organizational structure? ›

This structure enables Coca-Cola to tailor its approach to match each region's unique preferences, regulations, and market dynamics.

Is matrix management good or bad? ›

On one hand, it encourages collaboration, creates new lines of internal communication, and allows employees to develop new skills. However, the matrix structure also has drawbacks including slower decision making, conflicts, and heavier workloads.

What is a weak matrix organizational structure? ›

In a weak matrix, the project manager has the least amount of decision-making power compared to the other matrix management types. When the project manager has limited authority over the project, the matrix becomes weak because the project budget and timeline is in the hands of the department head.

What are the four types of organizational structures? ›

What Are Some Types of Organizational Structures? The four types of organizational structures are functional, multi-divisional, flat, and matrix structures.

What is matrix in structural analysis? ›

Matrix Structural Analysis (MSA) and Finite Element Methods (FEM) are numerical analysis techniques which rely on the reduction of complex physical problems into sets of linear equations solved using computer algorithms.

How to implement a matrix organizational structure? ›

s how to apply the matrix structure:
  1. Highlight your development needs.
  2. Define roles based on outputs and not inputs.
  3. Line up procedures and systems to support the structure and the behaviour that comes with it.
  4. Invest in training and development.

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