Matrix organization structure

Matrix organization structure is instead of the product-based multidivisional structure, some organizations have chosen to operate with two overlapping structures. One structure might typically be product-based, with another parallel structure being based on some other element, such as geographic region. The two elements form a matrix of responsibilities. Strategy needs to be agreed by both parts of the matrix. See also Multidivisional organization structure.

Definitions

According to the Corporate Strategy by Lynch (4th edition),

Matrix organization structure. Instead of the product-based multidivisional structure, some organizations have chosen to operate with two overlapping structures. One structure might typically be product-based, with another parallel structure being based on some other element, such as geographic region. The two elements form a matrix of responsibilities. Strategy needs to be agreed by both parts of the matrix. See also Multidivisional organization structure.