Explain the matrix structure.

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The matrix structure is a hybrid organizational form, containing of characteristics of both project and functional structures. In consumer goods industries, it could contain the characteristics of both product and functional departments. This structure allows operational responsibilities to be divided into two parts. One part contains all the responsibilities associated with the management of an independent business and is given to an individual who is called 'business manager' or 'product manager'. The other part contains all the responsibilities related to the management of resources needed to get the job done. The person responsible for these is the usual 'functional manager' or 'resource manager' in charge of the functions like production, marketing, finance, personnel and so on.
The matrix is built around a cooperative relationship between the project/product manager and the functional/resource manager. Thus, project staff members in a matrix structure have a dual responsibility. First, they are responsible to the head of their functional department, the person who has assigned them to the project. The functional department head is their line superior and will continue to be so. But the project manager exercises what is called project authority over the project staff.
When the concepts of functional and project authority are brought together, the result is an organization structure that is both vertical and horizontal. The vertical pattern is brought about by the typical line authority flowing down from superior to subordinate. The horizon authority flow is caused by the fact that both the scalar principle a unity of command principle is violated.
Companies like Larsen & Toubro (L&T), U.P. Construction Corporation, Afcons-Pauling, etc., adopt this structure for the execution of various projects. For instance, L&T's construction of Jawaharlal Football stadium in Madras and Mcons-Pauling's laying the East Coast road are big project themselves. The execution of such projects is entrusted to a team drawn from the functional departments of the headquarters. The overall responsibility for the project lies with the project manager. The people who work in the project are resp6nsible to the project manager as well as the functional head from whom they are drawn. The matrix may be temporary or permanent. In construction and turnkey activities, project is disbanded after the execution, whereas it may take a permanent form in the case of consumer goods company.

Kavungya answered the question on March 26, 2019 at 12:49

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Explain the matrix structure.

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