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Matrix organization

This article about the Matrix organization provides you with the matrix organization definition also a concrete one Example. The matrix organization is simply explained as is the point Matrix organization before and Disadvantage. You will also get an overview of Single line systems and Multi-line systems.

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  • Matrix organization definition
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  • Matrix organization classification
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  • Matrix organization simply explained
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  • Matrix organization advantages
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  • Matrix organization disadvantages
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  • Matrix organization areas of application
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  • Matrix organization example
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  • Matrix organization summary
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Matrix organization definition

The matrix organization is one multi-dimensional organizational structure of a business. Interfaces functional organizational areas and Business areas are (in this form of organization) by a matrix pictured.

Matrix organization classification

In addition to the matrix organization, there are other forms of organization. In general, an organizational form can be a Single line system, a Bar line system or a Multi-line systemsbe. Here are, among other things, that Product portfolio, the size of the company, or the distribution of tasks within the corporate structure, determines which form is the best.

Single line systems

These systems are strictly enforced hierarchical structure marked, with which an employee always exactly one parent instance is assigned. A distinction is made between the functional Form of organization and the divisional.

At the after Functions articulated form will be the Organizational units according to operational Work areas such as sales, finance or production. In the divisional Organization, too Division organization called, is broken down according to customers, products and regions.

Bar line systems

In order to provide the individual instances with additional information, it is possible to provide this so-called Bars assign. So arise Linear systems.

Multi-line systems

The matrix organization is an example of a Multi-line system. Here employees receive instructions from multiple higher-level instances. The more complex system from the horizontal and vertically crossed lines of the matrix Interfaces, through which an employee is no longer assigned to just one area.

Matrix organization simply explained

The horizontal plane the matrix represent depending on the company product-,region- or project-related areas These business areas can for example concrete products be.
In vertical direction is in functional work areas structured. These are also called functional areas and are, for example, the distribution or the Production. The horizontal and vertical lines create a matrix With Interfaces. The individual ones are located at the interfaces Project teams respectively specific departments, which each one Project- or Head of department are assigned to the functional and divisional level.

Matrix organization goal

The goal of the matrix organization is that advantages the one-dimensional forms of organization according to business or functional areas combine. These resulting interfaces are responsible for a specific combination of a business area and a functional area and should be Achieve synergy effects. It is aimed at that subject-specific knowledge the individual Divisions and Departments to be able to use it optimally.

Matrix organization implementation

In the optimal case, the matrix organization is characterized by the absence of strict hierarchies out. It means that all areas same level of functional and divisional organization Equal rights are and thus also interfaces of these.

Matrix organization requirements

In practice, this equality creates a high need for communication and the Coordination effort increases. The matrix organization calls for managing directors and employees due to the increased responsibility out. Managers are by this structure for several lines at the same time responsible. Equals Employee will also additionally challenged due to the increased need for communication to each other and the need to report to two superiors.

Matrix organization advantages

  • Clear management structure
  • No hierarchies between the individual areas
  • Shorter ways communication and thus faster coordination
  • Presence of a permanent contact person for the employees
  • Promoting the Teamwork
  • Strengthening the social environment
  • Specialized management staff
  • Possibility of tight and technical control of employees on a horizontal level

Matrix organization disadvantages

  • Increased demand to Management staff
  • Lack of transparency in decision-making processes
  • Longer decision-making processes due to the increased coordination effort
  • increase internal competitive situations and conflicts
  • Conflicts of competence through power struggles in teams
  • Unclear regulations and less transparency of competencies
  • Attribution problems of success and failure
  • possibility overwhelmed employee

Matrix organization areas of application

The matrix organization is mainly supported by large companies applied which too international act. Often times it is for that Competitiveness It is important for these companies to specialize in more than one area, creating multiple lines of business. Especially popular is the matrix organization in project-oriented industries like that Construction or the Vehicle development. This is hardly used multi-dimensional form of organization however in the Mass production or the Administration.

Matrix organization example

Let's look at for illustration fictional example at how that Matrix organization can be used in a company.

The international Vehicle manufacturer Move AG acts in several countries worldwide. The company has structured its business areas according to its products. This is how the horizontal dimension the matrix with the divisions:

The vertical lines educate the Functional areas of the company, for the sake of simplicity these are only:

  • production
  • distribution
  • Finances

The individual areas is one manager each assigned. That is why Move AG has a manager for cars, motorcycles and trucks, and also a manager for production, sales and finance.

The employees will be the Interfaces in Teams assigned and are therefore always subordinate to two managers. For the Project “innovativeE-car " let's look at the division first cars more precisely. An employee from the team AP, which the responsibility for the production So the cars of our project are carrying is both that Manager for cars, as well as that Production manager subordinate and must also report to both of them.

The Manager For cars has very in-depth knowledge above cars and so can his teams line give competent instructions.
The Production manager however, is a specialist in that Manufacture of vehicles and can thus optimally coordinate these processes.
When the two Manager about the Action in Team AP agree the existing know-how for car production is optimal mutually supplemented and you can cross-divisional learning effects achieve. However, Manager A and Manager P do different views, can it to Conflicts come and get the staff from team AP at worst contradicting work instructions of the two equal bosses.

Matrix organization summary

  • The matrix organization is one multi-dimensional form of organization
  • The horizontal and vertical lines form Interfaces the Business areas and Functional areas, whereby Areas of responsibility be determined
  • The matrix organization aims to take advantage of the one-dimensional forms of organization to combine
  • Are characteristics of the matrix organization missing hierarchies of areas and the high communication needs