2016-12-12 00:00:00 Operations English Learn the definition of a matrix organization and how it helps a company achieve higher productivity and more efficiency in solving... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/03/08214622/Operations-Manager-Matrix-Organization-Coworkers.jpg Small Business Terms: Define Matrix Organization

Small Business Terms: Define Matrix Organization

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A matrix organization is an organizational structure, often temporary in nature, designed to support the management of a specific project or business-specific processes. The lines of authority and reporting extend both vertically and horizontally, forming a matrix. It typically involves bringing together employees and managers from different departments under a new command and control structure. Employees in a matrix organization report horizontally to a project manager while still reporting vertically to their department manager.

The concept of a matrix organization is to create cross-company collaboration by merging different functional disciplines for the purpose of achieving a specific goal. Companies cite higher employee productivity and more efficient problem-solving as major benefits of using a matrix organization. Employees are exposed to different functions apart from their core function, which fosters employee development.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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