Matrix Structure

The matrix structure combines elements of the functional and the divisional structures, bringing

together specialists from different areas of a business to work on different projects on a short-

term basis. Each person on the project team reports to two bosses: a line manager and a project

manager. The matrix structure, popular in high-technology, multinational, consulting, and

aerospace firms and hospitals, offers several key advantages, including the following: flexibility

in assigning specialists, flexibility in adapting quickly to rapid environmental changes, the

ability to focus resources on major products and problems, and creating an environment where

there is a higher level of motivation and satisfaction for employees. The disadvantages

include the following: the violation of the “one boss” principle (unity of command) because of

the dual lines of authority, responsibility, and accountability; employee confusion and

frustration from reporting to two bosses; power struggles between the first-line and the project

managers; too much group decision making; too much time spent in meetings; personality

clashes; and undefined personal roles.The disadvantages notwithstanding, many companies

with multiple business units, operations in multiple countries, and distribution through multiple

channels have discovered that the effective use of a matrix structure is their only choice.

The matrix structure is for project-oriented businesses, such as aerospace, construction, or small

manufacturers of the job-shop variety (producers of a wide diversity of products made in small

batches).