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"Matrix Organizational Structure"

Most managers and employers are familiar with hierarchical business models and traditional organizational charts.

These resources are used to illustrate the chain of command within a company.
They show which employees report to which manager and how responsibilities, job roles
and activities are organized to meet business development opportunities.

Traditional organizational structures usually include one chain of command.
With a Chief Executive Officer at the top of the chart, it is clear to see which staff report
to which manager, and management roles are fixed.
Each level of staff reports to the manager above them on the chart, with everybody
ultimately feeding upwards to the CEO.

While the traditional corporate hierarchy is undoubtedly effective in some environments, it
is less effective in companies where cross-functional team working is prioritized.
In these types of organizations, a matrix structure is typically more effective.
A matrix organizational structure is especially useful for companies that share resources
and employees across multiple sites.

Within a traditional hierarchy, workers report to one manager or boss. In a company with a
matrix organizational structure, employees must report to both a product/project manager
and a functional manager.
The product/project manager carries out the responsibilities of a traditional project
manager, whereas the functional manager oversees functional, or routing, activities.
When skills must be shared across sites or departments to meet an objective, a matrix
organizational structure can enable the company to effectively use employee strengths
and talents.

In a matrix structure, staff often have more than one job role and work across more than
one area of the business. For example, a person working in the role of social media
manager will likely need to interact with communications, PR, digital marketing and sales
staff.
 

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