The basic manufacturing organizational structure usually follows the traditional hierarchical organizational structure, which consists of the directors, senior executives, department heads, and the employees. Perspectives on global organizations 30 The way a company organizes itself—how it allocates responsibilities, how it organizes support services, and how it groups products, brands, or services—can have a substantial impact on its effectiveness. More broadly, it may also describe the management of cross-functional, cross-business groups and other work models that do not maintain strict vertical business units or silos grouped by function and geography. Matrix management is about managing and every person in the organisation must undergo a thinking shift. Matrix organizational structure is really beneficial to the employees. The current era favors democratic culture more than the autocratic culture and when there are many managers ordering their own work on employees, motivation level would fall drastically. Although authority is compulsory, too much of it is undesirable and can adversely affect the employees as well as the system. Every manager, every professional, every skilled and semi-skilled employee will be impacted. The matrix structure provides a good environment to learn and grow. Raising the bar A benchmarking study of organisational structures in manufacturing companies www.pwc.in September 2013 Introduction p2/ Participant demographics p5/ About the Indian manufacturing sector p7/ Business focus and structural challenges p9/ Structure benchmark analysis p12/ Benchmark of structural characteristics p17 Structure and attrition p19/ Conclusion p20 The matrix structure, as its name suggests, is a reporting structure that’s set up like a grid or matrix. In a traditional hierarchy, people in the company report to just one boss. Typically, she’s charged with writing promotional copy for the company’s website and reports to the organization’s marketing director. This structure allows decentralized decision making, greater autonomy, more inter-departmental interactions, and thus greater productivity and innovation. A design structure matrix lists all constituent subsystems/activities and the corresponding information exchange, interactions, and dependency patterns.For example, where the matrix elements represent activities, the matrix details what pieces of information are needed to start a particular activity, and shows where the information generated by that activity leads. The matrix structure is here to stay, but its complexity can be minimized, and companies can get more value from it. Matrix structure becomes too autocratic when it comes to the number of managers. If a car manufacturer wants to design, produce and market a new model, the process involves most parts of the organisation and a flexible/adaptable system is needed to achieve the objectives. Matrix management is a structure for running those companies that have both a diversity of products and a diversity of markets. The matrix organizational structure is a combination of two or more types of organizational structures. Matrix Structure. In a matrix structure, individuals work across teams and projects as well as within their own department or function. In this post, we’ll analyze and exemplify 5 of them, so you can understand their advantages and disadvantages, and choose which one to employ in your organization. Since matrix structures lack a strict hierarchy, HR workers must function within the framework established by the department manager. To make a quality matrix organizational chart, the easiest way is always starting from templates. 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