Matrix Organization - Meaning & Definition

Published by MBA Skool Team, Last Updated: June 06, 2013

What is Matrix Organization?

Matrix structure is a planned structure for the organization where different domains like finance, marketing, HR others get overlapped with the projects at hand. So, an employee must report both to the concerned domain head and to his respective project manager at the same time.

In this way, this forms a structured interconnection for the same employee from two heads. Though the employee will be paid as per the compensation policy in that organization but it is expected he needs to coordinate with both the managers and both the roles at hand.

The advantages of matrix structure are that the skills of the employees get broader as they have to deal with different projects at the same time. In this way, employees tend to be more flexible and work with global culture yet responding to local demands. The strategic advantage is better interconnectedness and high utilization of skills of the organization employees.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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