Which Company Or Organisation Would Use A Matrix Structure?


3 Answers

Deborah Mann Profile
Deborah Mann answered
All the global companies today have a matrix structure where they have a combination of geographical divisions with product divisions. Areas in which these companies can be found are in the aerospace, chemical and engineering industries.

In the matrix structure, employees are grouped by both function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. An example would be a company that produces two products, 'product a' and 'product b'. Using the matrix structure, this company would organize functions within the company as follows: 'product a' sales department, 'product a' customer service department, 'product a' accounting, 'product b' sales department, 'product b' customer service department, 'product b' accounting department. Matrix structure is amongst the purest of organizational structures, a simple lattice emulating order and regularity demonstrated in nature. There are three separate types of matrix structure which can be used.

First is the Weak Functional Matrix here a project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.

The next type is Balanced Functional Matrix. In this matrix a project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projective organizations. However, this is the most difficult system to maintain as the sharing of power is delicate.

Lastly there is the Strong Project Matrix here a project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.

Among these matrixes, there is no best format; implementation success always depends on organization's purpose and function.
Aisha Profile
Aisha answered
Matrix structure is a type of organizational structure that has two organizational forms and thus reap the benefits of both structures. All the global companies today have matrix structure where they have a combination of geographical divisions with product divisions. This way they can exploit the benefits from both which are economies of scale from product based structure and also from geographical structure that increases the product base. E.g Unilever. Thus a company or organization that is dealing with multiple and diversified products and is working across a number of geographical areas is most likely to use a matrix structure.
amber Jhon Profile
amber Jhon answered
In the organization structure, matrix structure is the most complex structure. In this structure teams of the individuals are formed from different functions of the company. These teams are headed by the project managers and they are responsible to carry out certain tasks. There are various reasons because of which an organization may decide to shift from an organizational structure to the matrix structure. For example, when an organization has to accomplish tasks which need the expertise of various fields, then matrix structure is adopted. It is chosen when the organization needs to select the individuals according to the need of the project. In a matrix structure there is more decentralization therefore, if an organization decides to go for a more flatter structure then this structure is selected.

Answer Question