![]() In a matrix organization, there is a better and more efficient use of resources.Their functional manager can help them with their knowledge and skills, and the product manager can give direction to their work and efforts. They gain the advantage of having dual support. Matrix organizational structure is really beneficial to the employees.Formal Organization- Project Management Organization.Formal Organization- Line and Staff Organization.Formal Organization- Functional Organization.At the same time, these employees also report to the departmental managers or department heads. And they are headed by a project manager who then directly reports to the CEO or COO. So in this structure, a group of employees from various departments comes together to form another group assigned to a particular project or a particular product. So in this structure, an employee will have two reporting authorities – his functional (departmental) manager and his project manager. Then there is also a project division, which forms the horizontal chain of command in the grid. ![]() These are the vertical structures of the grid. There are still departments according to functions like IT department, finance department etc. In a modern matrix organization, there is a grid structure rather than the traditional hierarchy structure. It is somewhat a combination of functional organization and project management structure. This is a fairly new and evolving organizational structure, which was first developed in the West. In a matrix organization, the structure of the company represents a grid-like structure or a matrix. A matrix organization is more complex and complicated than these three. We have previously seen three types of organizational structures – line, functional and line and staff.
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