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Matrix Organizational Structure

In: Business and Management

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| 2014 | | QAUID-I-AZAM UNIVERSITY ISLAMABAD FARHAN AHSAN
MBA-1ST SEMESTER |

[INDIVIDUAL REPORT PROJECT] | MATRIX ORGANIZATIONAL STRUCTURE |

Quaid-I-Azam School of Management Sciences
ISLAMABAD

Submitted to:
Sir Sarfaraz Hussain Ansari

Subject:
Principle of Management

Introduction: A matrix organization structure can simply be defined as an organization, which has multi reporting lines in which employees have more than one formal boss. In other word a matrix structure is a grid like organizational structure that allows a company to address multiple business dimensions by the help of multiple command structure. If we closely examine this, we can easily find it, as a hybrid of functional and divisional structure. Multinational companies usually practice matrix structure or matrix management system to blend and bring functional and divisional structure under the same umbrella of an organization in order to gain more benefits out of it. But at the same time, it is not so much easy as it looks, but, rather it is very much difficult and challenging job for the top management to carry on operations in a matrix system. We will later in detail discuss the challenges, pros and cons of matrix organizational structure and how to deal with them.
The concept of matrix organizational structure evolved in 1960s to meet the needs of the aerospace industry. NASA was the first organization who adopted matrix organization structure for its multiple projects. Government contract selection process required a project-oriented system, which should have a direct link with the top management. In order to fulfill this requirement, a system was established in which a set of horizontal project groups over the traditional vertical project groups were made. When this model was drawn on paper it depicted the shape of a matrix. So thereafter, this system

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