## Matrix Structure
A matrix structure combines the functional form and the product/project form simultaneously at the same organisational level.
### Core Features
- Every employee has two superiors: a functional manager and a product/project manager.
- Functional departments (e.g., engineering, marketing) are relatively permanent and vertical.
- Product/project units are usually temporary and act like divisions on a product-market basis.
- Depends on both vertical and horizontal flows of authority and communication → most complex design.
### When Matrix Structure Is Appropriate
Three conditions signal the need for a matrix:
1. Ideas must be cross-fertilised across projects or products.
2. Resources are scarce (shared across projects).
3. Need to improve information processing and decision making.
### Advantages
- Combines stability of functional structure with flexibility of product form.
- Effective in complex, dynamic technological and market environments.
### Disadvantages
- Higher overhead costs due to more management positions.
- Dual authority can create conflict and ambiguity.
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## Davis & Lawrence: Three Phases of Matrix Development
| Phase | Name | Description |
|---|---|---|
| 1 | Cross-functional task forces | Temporary task forces for a new product line; a project manager acts as the key horizontal link |
| 2 | Product/brand management | Task forces become permanent; project manager becomes a product/brand manager; function remains primary structure but brand managers integrate across products |
| 3 | Mature matrix | True dual-authority structure — both functional and product structures are permanent; every employee reports to both a vertical functional superior and a horizontal product manager |