Matrix Form of Organizational Design
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Reporting to multiple managers is one of the disadvantages of the matrix form of organizational design which is based on 2 overlapping bases of departmentalization. Generally the matrix form is used when there is:
1. strong pressure from the environment.
2. large amounts of information need to be processed.
3. pressure for shared resources.
What are some of the advantages and other disadvantages of this type of design?
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Matrix Organization Structure
In the matrix organization two different structures overlap on the same hierarchical level. It's a combination of horizontal and vertical organization structures. The point where horizontal and vertical structure intersects represents the positions which are responsible for carrying out the tasks of both, horizontal as well as vertical organization structures.
A matrix organization structure is also known as cross functional work team which reports to the different parts of the company in order to complete a task or an important project. The matrix structure is an organizational design that groups employees by both function and product. Companies wanting to respond more quickly to changes in the business environment implement matrix organization structure. This makes company more responsive, ability to meet the new customer demand and decrease the lead time of the products.
This type of organization structure is generally associated with the very complex projects for example for making an aircraft. It is also used in product /project management situations.
This structure can be formed anytime in the company to perform a complex task where the employees are grouped together in work team headed by someone other than their primary ...
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