What Is a Matrix Organization?


Quick Answer

A matrix organization is a business or entity where project managers are arranged in a horizontal hierarchy and department heads are arranged vertically, notes BusinessDictionary.com. This structure describes the relationships between employees and determines seniority.

Continue Reading
Related Videos

Full Answer

The vertical and horizontal flow of authority creates a visual matrix when viewed in spreadsheet form. It ensures that authority flows in both directions, which creates more accountability within an organization. Although introducing a matrix organizational structure to a business can reap long-term rewards, it also requires significant adjustments during the initial deployment. It might lead to increased costs, confusion among employees and blurred job descriptions, notes Business Week.

Learn more about Business Resources

Related Questions