5. Matrix organisation

The matrix organisation is a multiple line system. In a multiple line system each employee can have more than one superior. The matrix structure is a combination of functional and product structure. The employees of a functional department can also take part in project teams. They are selected according to task requirements and are members of both a functional department and a project team for the duration of the project. They also have two supervisors. They are responsible to the functional manager in the case of their normal work and to the project manager in the course of their project work.

The advantages of the matrix organisation are that it encourages flexibility and creativity. It enables managers to select employees with the appropriate expertise to meet dynamic business needs. As they operate as a team they are easier to organise and motivate. Information is shared more readily. Superiors and employees can specialise which increases the depth of knowledge.

Disadvantages may arise from the divided roles of employees. For example, a member of the finance department is accountable to the finance manager and the project manager. If these relationships are not managed carefully, it may lead to confusion