Suggest a new Definition Show Proposed definitions will be considered for inclusion in the Economictimes.com Definition: A matrix organisation is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss! Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. reaching higher productivity. It has various benefits. This type of structure is used in organisations which have diverse product lines and services. It breaks the monotony and gives more flexibility to the organisation. Employees work with colleagues of different departments who have their expertise in different functions. When different people from diverse departments work together, it helps solve problems in a more efficient way. It does lead to overall development of employees as each one is exposed to different functions apart from their core job. Here employees are assigned a job or a project outside their own department for a relatively temporary period. These teams are made up of people with diverse expertise who have come together and formed a team to attain a specific goal. However, there are some challenges as well. In matrix organisation structure, ambiguity could come in, if you (employees) are not sure which manager to report to. This also means that employees might be confused about their role and responsibility. Apart from that, in the matrix organizational structure it becomes relatively difficult for the organisation to gauge the employee’s performance on a particular project. The matrix structure turns out to be a bit more expensive to the organisation than the traditional one, because it employs more managers.
 Schermerhorn & Bachrach / Management, 13th edition Test Bank Copyright © 2015 John Wiley & Sons, Inc. 11-1 Chapter 11: Organization Structures and Design True/False 1.An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups. Answer: True Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 2.An organization chart includes major subunits in which positions reporting to a common manager are shown. Answer: True Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge 3.A social network analysis is a tool that identifies formal structures and their social relationships. Answer: False Learning Objective: 11.1 Difficulty: Easy AACSB: Analytical thinking Bloom’s Taxonomy: Knowledge Recommended textbook solutionsAuditing and Assurance Services14th EditionAlvin A Arens, Mark S Beasley, Randal J Elder 124 solutions Consumer Mathematics1st EditionAGS Secondary 3,032 solutions Consumer Mathematics1st EditionAGS Secondary 3,032 solutions Business Math17th EditionMary Hansen 3,553 solutions What is short term and identifies specific goals and activities for each part of the business?Operational planning is short-term planning that identifies specific activities for each area of the business.
Which of the following is a benefit that managers receive from planning?Which of the following is a benefit that managers receive from planning? Helps to determine if progress is being made. Helps managers communicate and coordinate activities.
Which of the key elements of effective planning is not true?Accordingly, planning at lower level focuses on broad, long-term issues is not true concerning planning.
What is meant by strategy of planning?Strategic planning is a process in which an organization's leaders define their vision for the future and identify their organization's goals and objectives. The process includes establishing the sequence in which those goals should be realized so that the organization can reach its stated vision.
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Work assignments and relationships in a matrix organization are clear but temporary.
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