Organizations with hierarchical structures are easily graphed and defined. Often described as "tree structures," they are unambiguous and relatively permanent organizational models, in which each element in the organization reports to a higher element and concludes with the CEO or Board of Directors at the top. A matrix organizational structure, by contrast, is everything that a hierarchical structure is not. There are separate chains of command and employees are generally accountable to more than one boss.
What is a Matrix design or Structure?
A well-known feature of this hierarchical model is that everyone in the organization reports to a single boss. The matrix structure is different in striking ways:
The Origins of Matrix Organizational Structures
Matrix structures evolved in response to the rise of large-scale projects in contemporary organizations. These projects required rapid infusions of technological know-how and efficient processing of very large amounts of information. Older organizational structures proved to be ill-equipped to deal with these very projects within the necessary time limits. What these large projects called for was an organizational structure that could respond quickly to interdisciplinary needs without disrupting existing functional organizational structures.
Advantages of Matrix Structures
Because matrix structures retain an organization's functional structure, they allow for the rapid creation of efficient large-scale, project structures that employ many members of the organization's functional structure but without disrupting or destroying the structure in the process.
Because the two organizations have different timelines – one relatively permanent, the other designed to expire with the completion of the project – the kinds of managerial discontent that can arise when a sub-unit in an organization "steals" employees to work on a project is muted. In ideal matrix structures, the two structures share resources equally without territorial struggles, because as each functional manager knows, the project structure will eventually dissolve. Other advantages of matrix structures noted in one of the seminal academic studies of these structures are:
Due to these factors and advantages matrix design of corporate structures always transitional in nature.
Why is a global matrix design of corporate structures almost always transitional in nature
What is the global functional design of corporate structures? What are its strengths and weaknesses?
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