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Matrix Organizational Chart Explained With a Diagram

Bhakti Satalkar Jul 24, 2020
Different organizations have different organizational structure. One of the organizational structure widely used is the matrix organizational structure. However, the matrix organizational chart often differs from one company to another.
Every organization follows its own organizational structure. It is the structure, which helps in task allocation for the employees, coordination between the team members from the same team as well as team members from different teams, etc. The aim of the structure is to achieve organizational goals.
The structure may be decided upon taking into consideration the objectives of the organization. At the same time, it is important to note that the structure of the organization depends on the modes in which the organization operates and performs.
There are different organizational structure types, which are followed in different parts of the world. Some of the structures are bureaucratic structure, post bureaucratic structure, functional structure, divisional structure, matrix structure, etc. In this write up, we will read on matrix organizational structure and also take a look at the chart.

Matrix Organizational Structure

In the matrix organizational structure, people with similar skill sets are put together into one team. The grouping of employees can be done using both functional skills as well as skills required for the product. This structure has an important advantage for the organization.
The strength of different employees can be harnessed to the maximum and also the team members are able to cover up for each others weaknesses. The organization can either be pure matrix organization or a fully functional matrix organization.

Advantages of Matrix Organizational Structure

When a team member is chosen for a project, the needs of the project are taken into consideration along with the skills of the person. Therefore, the team chosen is dynamic and is able to handle the problems in the project well. There are specialists, who are also a part of the team, who bring in a new perspective and depth of knowledge to the team.
Therefore, the quality of the product is normally very good and there is no reason for the customer to complain. Also the composition of the team is such that it becomes easier for the team members to communicate with each other, as there are no barriers. The responsibility of completing the project on time often rests on the project manager.

Disadvantages of Matrix Organizational Structure

There are some disadvantages of this structure as well. Many times, the employees are shifted from one team to another, which often leads to conflict of loyalty. The problem may ensue between the project managers and the line managers, over sharing of resources.
In most cases, different project teams have a lot of independence, which can make it difficult for the project progress to be monitored. Often the cost of the project may spiral with creation of separate project teams. This is due to the fact, that there are many more number of managers as compared to the other organizational structures.

Matrix Organizational Chart

Matrix Organizational Chart

If you have to take a look at the sample matrix chart, you will see that the chart is used to describe the communication between the different members of the team.
The characteristics of the matrix chart is that the multiple levels of hierarchy are combined with communication responsibilities. Therefore, most people find this structure more complex, yet it is one of the easiest structure to understand. The other characteristic of this chart is that, it has one vertical axis of power and one horizontal axis of power.
If you have to look at any of the matrix chart examples, you will see that a number of departments work in tandem with each other to complete the project.
However, often there may not be clear indications about how the different departmental heads interact with each other as well as with their team members, for maintaining the quality of the project, by streamlining the internal team structure.
This matrix organizational chart template may not be the same for all the organizations following the matrix organizational structure. Note that some of the matrix organizations may have a dual authority structure, while in some, there may be single authority structure.
It is important to note that none of them is better than the other, as the success of the structure depends on the purpose and function of the organization itself.