What is Matrix organization

Definition: A matrix organisation is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss!

Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. reaching higher productivity. It has various benefits. This type of structure is used in organisations which have diverse product lines and services.

It breaks the monotony and gives more flexibility to the organisation. Employees work with colleagues of different departments who have their expertise in different functions.


When different people from diverse departments work together, it helps solve problems in a more efficient way. It does lead to overall development of employees as each one is exposed to different functions apart from their core job.

Here employees are assigned a job or a project outside their own department for a relatively temporary period. These teams are made up of people with diverse expertise who have come together and formed a team to attain a specific goal.

However, there are some challenges as well. In matrix organisation structure, ambiguity could come in, if you (employees) are not sure which manager to report to. This also means that employees might be confused about their role and responsibility.


Apart from that, in the matrix organizational structure it becomes relatively difficult for the organisation to gauge the employee’s performance on a particular project. The matrix structure turns out to be a bit more expensive to the organisation than the traditional one, because it employs more managers.