Matrix Structure

A matrix structure is a type of organizational design that combines multiple reporting lines. Employees typically report to both a functional manager (like finance or marketing) and a project manager. This setup fosters collaboration across departments and allows for flexibility in resource allocation. It aims to improve communication and innovation but can lead to confusion over priorities if not managed well. Essentially, the matrix structure enables organizations to respond quickly to changing demands while utilizing specialized skills effectively, balancing both project and functional needs.