Matrix Structure Law Law & Legal Definition
A matrix structure is an organizational structure that reflects both a functional and a divisional reporting orientation. They are usually characterized by a dual rather than a single chain of command. For example, people often work together in a team to achieve their projects goals. A person working on a project may have two bosses, the boss of the department that they work in and the leader or manager of the particular project that they are working on at the moment.
Some of the advantages of a matrix structure include:
- Creative solutions to problems
- Enhanced risk taking
- Greater utilization of resources
- Faster response to market
- Faster rollout of new products
- Better planning
- Enhanced communications and information transfer
- Enhanced managerial growth
Some of the disadvantages include power struggles, group anarchy, and higher overhead costs.
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