Matrix Organization
The matrix organization represents a two-dimensional hierarchy. This is based on positions reporting to more than one superior organizational object.
Using the matrix organization tool, you can distribute limited resources across multiple organizational structures.
In a plant you may have a maintenance crew that is multi-talented, and thus not restricted to working in a specific work center. The pipe fitter in the crew reports to the manager of the work center where he fits pipes (functional reporting). He also reports to his own line manager (line reporting).
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:
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Project Matrix Organization
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Team Matrix Organization
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Product Matrix Organization
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Matrix in Connection with Legally Autonomous Units
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Matrix for Applicant Selection Procedure
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.