For which companies is the matrix organization recommended?

For which companies is the matrix organization recommended?

The matrix organization is particularly popular in project-oriented sectors such as construction or vehicle development. On the other hand, this multidimensional form of organization is rarely used in mass production or administration.

When does matrix organization make sense?

The aim of the matrix organization is to combine the advantages of the functional organization and the divisional organization. The matrix organization places high demands on the senior manager or managing director, since this person is responsible for two lines.

What is a matrix organization?

The matrix organization is the basic form of a multidimensional organizational structure in which decision-making powers are formulated for all sub-actions in the course of the formation of areas and transferred to decision-making units that are only allowed to make decisions together.

What is a line function?

Line functions in a company are directly involved in the value-added process. This means that their tasks consist of implementing measures that are derived from the company’s goals, such as the purchase of raw materials, the production of goods or compliance with cost targets.

What is meant by business organization?

The company organization describes the entirety of the working methods of different structural components of the company, as well as the coordination of these components with each other. It is to be understood against the background of the overarching corporate goals.