In a matrix structure, reporting channels form a grid, and employees typically report to both a functional manager as well as a product manager. Broad organizational structure organizational chart. Virtual organization an organization whose members are geographically apart, usually working with email, collaborative. It is used for a high level of group coordination to respond to changing conditions.
More broadly, it may also describe the management of crossfunctional, crossbusiness groups and other work models that do not maintain strict vertical business units or silos grouped by function and geography. It was used to solvemanagement problems in the aerospace industry. The matrix structure includes both functional and product responsibility. In other words, employees have dual reporting relationships generally to both a functional manager and a product manager. A matrix is an organizational structure that shares power among two or more dimensions. The organizational structure of an organization tells you the character of an organization and the values it believes in. A new structure creates new and presumably more useful managerial ties, but these can take months and often years to evolve into effective knowledgegenerating and decisionmaking relationships.
The table below outlines the interplay between these two dimensions in a matrix organizational structure. Kevan hall ceo of global integration and author of making the matrix work defines what is different about a matrix organization structure. The matrix structure, with its various forms, is an alternative to the functional 2 structure, the projectbased a. Matrix organisation meaningmatrix organisation was introduced in usa in the early 1960s. Matrix structures combine the benefits of traditional functional and product. Matrix organization, a system characterized by a form of management with multiple chains of command.
Hence to fulfill this vision nsa has design a new structure. Concepts and f0rmats when two or more people work together to achieve a group result, it is an organization. Organizational structure and design pearson canada. A matrix type of organisational structure combines the traditional departments seen in functional structures with project teams. Even those wellversed in organization design will find a significant number of the kits resources useful. Nature and characteristics of organisation structure 3. The result is creation of dual line of authority that is balanced by top managers. Matrix organizational structure is one of the main forms of structures which is actively used by organizations to carry forth the functions of a company visually and effectively. Employees may have trouble figuring out whos really the boss of them. Unlike a traditional hierarchy in which each worker has one supervisor, a matrix system requires employees to report to two or more managers, each responsible for a different aspect of the organizations overall product or service for example, a video producer working at an advertising firm.
Creately diagrams can be exported and added to word, ppt powerpoint, excel, visio or any other document. Matrix management is an organizational structure in which some individuals report to more than one supervisor or leader, relationships described as solid line or dotted line reporting. Matrix organizational structure the term matrix organizational structure also project structure denotes one type of the formal organizational structure. It is the ability to achieve a balance that makes the difference.
Role of matrix management in organizational structure. Matrix organisation or grid organisation is a hybrid structure combining two complementary structures functional departmentation with pure project structure. An organizational structure defines how activities such as task allocation, coordination, and. The hierarchical model is the most popular organizational chart type.
Read this article to learn about matrix organisation. Matrix structure the matrix structure superimposes the product structure laterally over the functional structure recommended reading. Organizational structure types bureaucratic structures. Functional organization projectized organizatio n matrix organization weak matrix. The result was increased organizational complexity. In a matrix structure, individuals work across teams and projects as well as within their own department or function. Broad organizational structure editable organizational. A matrix org chart is a very common organizational structure many companies follow especially the enterprise of the internet industry. Definition a matrix organization is defined as an organization where people have to report to more than one boss.
The following are illustrative examples of matrix management. Matrix structure for supporting organisational innovation capability article in international journal of business innovation and research 81. One of these members is also appointed as the chairman. A matrix organisation is a structure in which there is more than one line of reporting managers. The matrix organization structure can deliver this, provided people have the skills to make the matrix work. The matrix developed as a natural evolution of organizational structures in. The matrix evolved to fill a need for an organization capable of dealing with great project size and complexity. For example, a project or task team established to develop a new product might include engineers. Matrix organizational structure is often used in project management because it speaks to both the product of the project and the function of the management producing it. The organizational structure determines how the organization performs or operates. Whether your business has a handful of employees or several hundred, its important to consider how to structure your organization so that it aligns with the values, goals and. Use pdf export for high quality prints and svg export for large sharp images or embed your diagrams anywhere with the creately viewer. A matrix org chart is one of the most complicated org charts a company can adopt but as well as the most useful one.
Project management organizational structures slideshare. The company streamlined its organizational structure to refiect its transition. History and organizational structure history the magnuson fishery conservation and management act of 1976, renamed the magnusonstevens fishery conservation and management act when amended in 1996 established a u. Therefore, when you do business with an organization or getting into a new job in an organization, it is always a great idea to get to know and understand their organizational structure. Copy of hospital matrix organizational chartyou can edit this template and create your own diagram.
The matrix organization is the structure uniting these other organizational structures to give them balance. The structure of an organization is dependent on its size, number of employees, resources, regions, divisions and hierarchy followed. Matrix organizational structure combines two types of organizational structures product organizational structure and pure functional structure, that allows correctly assign functions. Matrix structure organizational structure leadership. Essentially, the organization used a functional structure.
However, the project manager resides in the functional unit. Matrix structure the search for better and faster ways to develop products and meet customer needs led to the matrix structure. Unitary structure, the most common structure, can be described as single and separate unit without any divisions in which the heads of each major function directly reports to the top. The organizational structure kit is for a user group of all experience levels. This is mainly applied in large projects or product development processes, and hiring employees from different disciplines the matrix organization structure is where the. Hobday mentions14 that the matrix structure is strong in areas where the projectbased structure is. S icon key valuable information exercise b group discussion reading. The term organizational structure refers to how the people in an organization are grouped and to whom they report. The basis of the organizational structure is a classic vertical linear structure, which is combined with a horizontal structure showing adhoc generated teams dedicated to special projects. Hollow structure or network structure the organization has. The matrix structure superimposes the product structure laterally over the functional structure recommended reading. This article is aimed to make a brief introduction to org chart mainly on definition and advantages.
Matrix management is the use of multiple reporting lines within an organization to allow for flexible team configurations. Implementation and performance of a matrix organization structure. However, such key functions may vary from one organization to another. The way a business organizes its employees depends on a number of factors, but the goal of the organizational structure is to enable employees to do their jobs effectively so the business can meet its objectives. This file may not be suitable for users of assistive technology. The matrix organizational structure has had a great influence on project management. The design get popularity in 1970s and 80s when big companies like ibm, hp, nestle and citi bank used this structure.
Hollow structure or network structure the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster. Success in a matrix happens when you focus on building a new organization rather than simply installing a new structure. A matrix lets an organization use its staff more effectively. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms09.
It entails achieving a functional and product or process focus. Types of organizational charts organization structure types for. Best practices in matrix organizational structures gssa georgia. The matrix organisation structure is complex but helps in achieving the ultimate goal i. 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. Given the complexity of project management in the actual business world, the matrix structure is often used where the need for strong technical assistance across.
An evaluative study of the matrix structure in small public service organizations. The matrix structure groups employees by both function and product. Read this article to learn about organisation structure. Similar to the strong matrix, the project manager is a fulltime role.
Modular structure a firm assembles product chunks, or modules, provided by outside contractors. Effectively, it means that the employees of the organisation have more than one boss. The matrix organizational chart shows employees answer to the head of their department as well as to project managers whose authority crosses departmental lines. The kit structure allows you to access exactly what you need, for example only the tools or the knowhow sections. Even though the organisational structure is focus on the companys goal it also dictates how to report priorities and strategies of upper management. The matrix structure offers organizations an effective system for managing projects. Defining and solving the organizational structure problems.
This helps to prevent silos from forming whereby inefficient politics are involved in obtaining cooperation between teams. Matrix structure for supporting organisational innovation. Choosing a matrix is a serious, top level decision requiring commitment to a thorough implementation. The matrix structure is flat with decentralized authority. View and share this diagram and more in your device or register via your computer to use this template. Lets take a closer look at this type of organizational structure to determine its pros and cons in project management. In organizational management, a companys structure is usually either functional or project based. This structure can combine the best of both separate structures. Organisation structure is the pattern of organisational hierarchy based on authority responsibility relationship. The organisational structure is a hierarchy of people and its functions. A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. This is a type of organizational structure which facilitates a horizontal flow of skills and informations. Chapter 2 organizational structure of lic organization structure to perform the functions of the life insurance corporation of india, a committee consisting of 15 members is appointed by the central government. Matrix organisation is a combination of two or more organisation structures.