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How to Define Matrix Structure

Contributor
By Kent Ninomiya
eHow Contributing Writer
(6 Ratings)

In business, Matrix Structure is defined as a type of management system where professionals with a variety expertise are brought together to work on a projects. They report to a number of managers of different projects. The idea is to share knowledge and personnel to maximize effectiveness.

Difficulty: Easy
Instructions

    How to Define Matrix Structure

  1. Step 1

    Understand the hierarchy of Matrix Structure. Professionals on a project report to the project manager who in turn reports to a general manager or vice president. Since professionals can work on several projects under several managers at the same time, it is important to have strong central oversight from the senior managers. This ensures that there is no redundant work or conflicting interests.

  2. Step 2

    Take into account the cost benefits of Matrix Structure. Fewer people need to be hired since workers are shared between different projects. Time can be saved as those workers share information as they work on different projects. Theoretically, this results in a better product at a lower cost. However, costs can also increase as more managers are hired to oversee a variety of projects.

  3. Step 3

    Note that the strength of Matrix Structure lies in the sharing of information. Since professionals work on more than one project at a time, they can keep each other informed about progress in other areas of the company. Supporters of Matrix Structure believe that it makes a company stronger since different departments are not working against each other. They also believe employees benefit from a broader range of work experience.

  4. Step 4

    Realize that there are critics of Matrix Structure. Since professionals work for multiple managers there can be varying loyalties. If a Matrix Structure gets too big, it can be difficult to manage effectively. In-fighting can occur as managers compete for the time and attention of workers that they share.

  5. Step 5

    Remember that a Matrix Structure is a constantly changing form of management. As projects are created and dissolved, workers are redistributed among them. Managers are continually hired, reassigned and dismissed as projects require. A Matrix Structure can be temporary, lasting only as long as a project, or more permanent lasting for years in some form within a company.

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