Lesson 1: Managerial Organization


Matrix Organization

A large company with various projects likely would use matrix organization.


Project teams are assembled as needed and function as units until the projects are completed. Each employee reports to two supervisors. One supervisor is the project manager; the other is the general manager over the area of specialization (such as a department). Therefore, there is a vertical and horizontal flow of skills and information. This structure combines, line, staff and function structures.

Matrix Organization

  • Organizational structure found within line and staff organization
  • Also referred to as project management organization
  • Project manager and project team responsible for problem solving
  • Employees report to two supervisors: the project manager and the general manager within the specific work division or department

Try This


Below are 10 boxes with the different positions for a hypothetical company. Arrange the boxes into the dotted lines to complete a Matrix Organizational Chart for this company.

Note that on the Matrix Organizational Structure above that the thick grey lines represent communication flow going both directions. Human Resources is a staff advisor.


Think about the possible advantages and disadvantages of this type of structure and then click on the Advantages tab or the Disadvantages tab to see how you did.


  • Efficient information exchange occurs.
    • The matrix organization focuses on specific projects or issues and assembles teams of experts to solve problems creatively without disrupting the organizational structure.

  • Increased motivation is likely.
    • Managers are involved in the day-to-day operations, which allows them to make decisions through the viewpoint of employees.
  • Challenges to the matrix organization may result because each employee is accountable to two supervisors: the project manager and the general department manager.
  • Care should be taken to ensure that staff on project teams are not overcommitted and, as a result, compromise successful completion of project work.
  • This model is expensive to maintain because of the need for double management.