Matrix organizational structure

Ø      It is also called grid structure, multiple command system. It is also called hybrid organizational structure or project structure. It is a hybrid organizational structure. This structure combines functional as well as project structure. This structure superimposes project structure. Matrix organizational structure is a special type of problem solving form of organization. It requires diverse technical and administrative experts to adjust effectively with the dynamic and rapidly changing environment of the business. Matrix structure integrates the efforts of functional and project authority. The authority of the functional manager closes vertically down from the superior to the subordinates. The project authority flows horizontally crossing vertical lines. Under this structure employees have duel responsibility because they have get order from functional manger and project managers at a time and they have to report both managers simultaneously. Unity of command is violated.

This type of organizational structure is basically suitable for various projects. Big organizations carry out different projects at a time and the responsibility of managing project is given to project managers. Required experts specialist ad employees are send to different project from various functional areas of organization such as marketing, finance, production, engineering, human resource, etc. Unless and until the project is completed they work in the project under project manager and after completion of the project they will return to their respective department of functional areas. Therefore, they work under two superiors, functional and project manager. They have to report both project and functional manager hence, principle of unity of command is violated.