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A corporation that uses matrix organization is structured around both products and functions.
- To help you better grasp what a matrix organization is, let me first define it as a business structure that uses a grid to organize reporting connections. Instead of the usual hierarchy used by the majority of businesses, a matrix or grid is essentially used to express this.
- An employee must report twice, once to the product manager and once to the function manager or department. Â Your company may become more adaptable, nimble, and able to change more rapidly thanks to the matrix organizational structure, but implementing it successfully requires more than just developing a new organizational chart.
- It undoubtedly has its share of difficulties, but you can get through them and make the most of them. Texas Instruments, Phillips, Caterpillar, and other well-known companies that have adopted a matrix organizational structure have all done so at some point.
- The structure, nevertheless, appears to have gained greater traction in the 1970s before being seen as diluted and convoluted in the 1980s.
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