Large, complicated organizations use matrix management to organize themselves efficiently. With it, they can co-ordinate business units effectively without a huge management overhead.
Different types of manager – for example, functional managers, and regional managers – share responsibility for leading key individuals, teams, and business units. This means that an individual may have two bosses.
On one hand, this means that people can draw on a richer range of management expertise, and organizations are better coordinated and more competitive. On the other hand, it can be difficult to work for two different people, and this can have a knock-on effect on team members' morale and productivity.
There are many different ways that organizations can set up matrix management structures, however, common forms include product/function matrices, product/region matrices and function/region matrices: ...
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