What Is an Example of a Matrix Organization?

An example of a matrix organization is one that has two different products controlled by their own teams. Matrix organizations group teams in the organization by both department and product, allowing for ideas to be exchanged between various members.

A matrix organization is one where functional leaders are responsible for more than one area. Employees report to both their immediate manager and a cross-function leader. This type of organization is known as a matrix because when the relationship between an employee and the management team is demonstrated or illustrated, it usually appears on a diagram as a matrix square. Matrix organizations are very effective at maintaining good coordination.