What is Matrix Organizational Structure and What are the Types of It

Matrix organizational is the type of organizational construction in which the project manager shares responsibility with the functional managers in defining the priorities and managing the work of the executors involved in the plan. It’s an organizational construction in which executors can simultaneously be involved in work on several projects and report to several executives. A matrix organizational structure is characterized by the fact, that the project manager shares responsibility with the formal managers in defining priorities and managing the work of the executors involved in the project.
There are different types of matrices that differ in the division of power and responsibility between formal managers and project managers. This organization is a combination of two complementary structures: project and functional constructions. They are not characterized by unity of command. Every sub unit in the organization has to obey orders given by the functional head and the project director.

Matrix Organizational Structure and the Area of its Application

Matrix organization is a company in which the reporting relationships are set up as a grid, rather than in traditional hierarchy. In other words, employees have dual reporting relationship - generally to both a functional leader and the product leader.
Matrix is a new organizational construction created by functional and matrix management structures using modern information systems for the project. The main features of it are:

  1. It represents a network, does not have a single center, and the elements of the organization cooperate with each other.
  2. It functions by rigid control actions, rather than communication.
  3. There is no dominant element, but the system acts as an impersonal dominant force, imposing its will on the element.
  4. The main features of the organization are: flexibility, adaptability to environmental changes, global scope of activities, network principles of construction, decentralization, constant staff training and self-study, attitude to workers as to capital, wide diversification, social responsibility, informativeness, individualization of work with clients, self-organization (self-regulation), wide use of commands.
  5. It's one of the most widespread types of ruling the business, as it combines all the necessary steps toward the main goal of the company. It has many years of practice, great experience in the certain field, that's why it's recommended to use Matrix as the main scheme of your association's work.

Benefits of matrix organization structure.

Matrix is very widespread in the world of technology, management, and business because of having many benefits.
The main advantage of functional vs. matrix organizational structure is that it facilitates coordination between the various complex functions. It also enables it to allocate functional specialists among different departments in an effective manner. Matrix structures enable the organization to make opium utilization of employees’ skills, ensure that knowledge is available to employees in all the departments and projects, facilitate quick response to change in customer demands and project requirements, and help the company to reduce cost and improve performance. The success of the company depends on how effectively managers overcome the deficiencies of the construction and leverage in its positive aspects.

Strong, balanced and weak matrix organization structure.

As any normal association, Matrix has advantages & disadvantages. Let’s start with its best features. The first one will be the strongness. This is a group of employees, united through computer networks, who can participate in a single production process, being in different places scattered around the world. The virtual unit instrumentally facilitates the integration of the entire construction into a single system through Internet resources.

It’s balanced because its network has a multi-level structure: it consists of smaller parts and can even be part of a larger network. It represents the balanced system of indicators, which characterize the quantitative ratio of elements, sides of any activity.
It became obvious that most modern associations include many organizational structures at certain stages of the hierarchy, and also includes another element - network organizations are based on multifaceted, stable, mostly horizontal relations. In this article, we tried to describe the features of the new form of organizational structure, which was called Matrix. The new edifice of the organization has an organic structure, which got its name by analogy with living organisms, which are more flexible, capable of quickly adapting to environmental changes.

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