Matrix organization

The matrix organization is an organizational structure of a company. It forms the interfaces between the functional organizational areas and the product areas.

Definition / explanation

The organizational structure of a company is often divided horizontally into project or product-related business areas (product A, product B) and vertically into functional work areas (sales, production).

The intersections of the vertical and horizontal lines form the matrix. You are responsible for the respective business areas as well as for the respective functional areas.

The aim of the matrix organization is to take advantage of the Division organization and Functional organization of a company. It is similar to that Project management and is a Multi-line system the Organizational structure.

The matrix organization places high demands on ...

• Senior managers or managing directors through the responsible management of two lines
• Equal employees who are entrusted with coordinating the matrix
• the individual employees, as they have to report to two superiors

Advantages of the matrix organization

• significantly shorter communication paths
• clear structuring of the tour
• no hierarchy
• specialized management staff
• better balance between executives
• stronger teamwork
• Promotion of the social environment
• close and professional control of employees on a horizontal level
• a contact person is permanently available for the employees

Disadvantages of the matrix organization

• more managerial staff is needed
• no more transparency in the decision-making processes
• more conflicts and competition in the team
• possible excessive demands on employees can lead to burnout syndrome
• longer and cumbersome decision-making
• increased need for communication
• Conflicts of competence due to power struggles between employees
• Attribution problems of success and failure
• less clear regulations and transparency of competencies

Summary