The Advantages of the Matrix Organization

The Advantages of the Matrix Organization
An organizational concept closely related to unit management is the matrix system. This type of unit functions best in an environment with diverse product lines, high levels of technology, & new product introduction.
In matrix management, each middle managers has 2 bosses. While the plant manager reports only to the vice-president of operations, subordinates in materials, production engineering, & quality report both to the plant manager & to their counterparts at corporate HQ, the directors of materials, production engineering, & quality.
The matrix organization combines functional & direct line reporting relationships. While the materials manager, e.g., is responsible to the plant manager for day-to-day results, the materials manager is also responsible to the HQ materials director for functional systems. The HQ director is, in turn, responsible for uniform materials policies & procedures throughout the different plants & warehouses in the company.
The advantage of this relationship is readily apparent when group purchasing replaces individual plant purchasing to take advantage of dicsount associated with quantity buying.