Matrix Organisation

Marketing dictionary

Matrix Organisation

This organization attempts to combine functional and product forms of organization to obtain the advantages of each. Teams of functional personnel (e.g., manufacturing, research and development, finance, and sales) report to a manager with profit responsibility bearing a title such as business manager, category manager, or new product manager. The functional personnel also report to their functional bosses, who are responsible for maintaining the quality of functional performance. Comment: In this arrangement, functional personnel report to two bosses, which requires a high order of understanding and cooperation if it is to be effective. Matrix organization has met with mixed results and has both critics and champions. Source: AMA

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