Matrix Organization

Definition

The matrix organization represents a two-dimensional hierarchy. This is based on positions reporting to more than one superior organizational object.

Use

Using the matrix organization tool, you can distribute limited resources across multiple organizational structures.

Structure

In a matrix organization, a vertical structure combines with a horizontal structure, that is two divisions overlap on the same hierarchical level. Here, the principles of functional reporting and line reporting intersect. The points of intersection represent positions which perform tasks for both the horizontal and vertical line.

Different variations on the horizontal and vertical systems result in different appearances of the matrix organization, for example:

  • Project Matrix Organization

  • Team Matrix Organization

  • Product Matrix Organization

  • Matrix in Connection with Legally Autonomous Units

  • Matrix for Applicant Selection Procedure

Integration

Matrix organizations co-exist with hierarchical organizations. You use organizational objects to display different views within a matrix organization. You choose the views that are relevant to your business processes.