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Matrix organization
What is a matrix organization?
Matrix organization is a management structure in which employees simultaneously report to two (or more) managers. One manager is responsible for functional tasks (e.g. finance, IT, marketing) and the other for projects or activities.
This model blends line and project management structures, enabling companies to allocate resources efficiently and handle complex projects effectively. For example, a designer may report to an art director to ensure brand consistency while also working with a project manager who sets deadlines and goals.
This model helps companies allocate resources and efforts more efficiently between different projects without losing control over strategic directions.
Matrix organization is especially popular in large companies where many projects are being implemented simultaneously. It allows you to react quickly to changes and adapt processes to current needs.
However, managing a matrix structure can be challenging, as employees may receive conflicting instructions from different managers. To prevent confusion, companies typically establish clear guidelines, define responsibilities, and strengthen communication skills within teams.
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