A matrix organizational structure is a type of company structure where teams report to multiple leaders. In this structure, team members report to a project manager as well as their department head, allowing for open communication between teams and more efficient use of resources. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. This structure is more complex than a hierarchical structure, but it has many advantages, including clear project objectives, free-flowing information, and training for project managers.
Some key features of a matrix organizational structure include:
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Cross-team collaboration: A matrix organizational structure brings different roles together and creates a grid-like reporting structure instead of a traditional hierarchy. This approach represents how work actually gets done, since the day-to-day of employees is rarely limited to interaction only within their functional group.
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Two chains of command: In a matrix organizational structure, project team members have two bosses or managers, a functional manager and a project manager. These roles are fluid and not fixed, as the hierarchical structure between these two kinds of managers isn’t organizationally defined.
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Different management style: A matrix organizational structure requires a different management style, with both functional and divisional management.
Overall, a matrix organizational structure can offer many advantages that can benefit a companys daily work, but it also requires careful planning and team collaboration tools.