Matrix vs Functional Organization

Matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions.Functional structure divides the organization based on specialized functional areas such as production, marketing, and sales for the purpose of management.

Complexity

Matrix structure is complex in nature due to the combination of two organizational structures Functional structure is simple and convenient to manage.

Appropriateness

Matrix structure is appropriate for companies that have multiple product categories and carries out various projects Functional structure is suitable for organizations that operate in a single location with a single product category.

Summary – Matrix vs Functional Structure

The difference between matrix structure and functional structure mainly depends on the way they are structured and managed. For organizations that are significant in scale with many product groups, a matrix structure is ideal for management purpose.

If the organization is small or medium scale and has less diverse operations, then adopting a functional structure is appropriate. Proper chain of command and effective allocation of resources lead to higher employee motivation and cost savings. Thus the selection of organization structure should be made with care