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What is an example of matrix organizational structure?

Author

Rachel Davis

Updated on January 13, 2026

A matrix organizational structure is a workplace format in which employees report to two or more managers rather than one manager overseeing every aspect of a project. For example, an employee may have a primary manager they report to as well as one or more project managers they work under.

When would a company choose a matrix structure?

A company choose a matrix structure when it wants to promote innovation and speed up new product development process. Matrix structure enables company to group its employee in two ways- by function and by product or project.

Is Nike a matrix structure?

Nike has a matrix organizational structure incorporating geographic divisions. Nike’s matrix structure is also present at the regional and sub-regional levels.

Does Starbucks use a matrix structure?

Starbucks has a matrix organizational structure, which is a hybrid mixture of different features from the basic types of organizational structure. For example, the company’s product-based divisions intersect with functional groups and geographic divisions, which in turn intersect with other parts of the organization.

Which is company or organisation would use a matrix structure?

There are three separate types of matrix structure which can be used. First is the Weak Functional Matrix here a project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.

Who was the first company to use matrix management?

Matrix management was enormously popular in the 1970s and 1980s. Famous company like Philips, the Dutch multinational electronics company, was the first company to set up a matrix structure after the Second World War. It had national organisations (NOs) and product divisions (PDs), and for a while they operated successfully as a network.

Which is the best type of matrix structure?

1 Strong Matrix Structure In this type of matrix structure, the authority lies with the project manager. 2 Balanced Matrix Structure As the name suggests the balance of power in a Balanced Matrix Structure is distributed equally between the functional and project managers. 3 Weak Matrix Structure

Who is the functional manager in a matrix organization?

In this type of matrix structure, the project budget is controlled by the functional manager. The project manager has limited authority and power as his role is that of a coordinator.