A matrix organization does not follow the usual hierarchical organizational structure. You exchange resources and personnel across teams and projects, as well as among departments and functions, in a matrix structure. A matrix structure is made up of two or more different types of organizational systems. It’s a method of organizing your company so that reporting relationships are set up as a grid, or a matrix, rather than in a traditional hierarchy.
Employees in this structure typically have multiple reporting relationships, reporting to both their functional manager and the project manager. One reporting line will usually take precedence over the other (eg: staff may have to report to their functional manager before reporting to the project manager).
Motivated employees, information exchange, and cooperation are some of the benefits of matrix organizations. Higher complexity, a lesser level of responsibility, and so on are some of the downsides.
Also, See: Organizational Culture
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