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A Matrix organization structure combines the elements of functional and product-based departmentalization.
An organization that uses a matrix structure is one in which managerial accountability and responsibility is shared between two or more people. To different people and in other businesses, the name matrix, however, denotes rather different things. The two chains of command in a matrix are often one along functional lines and the other along project, product, or client lines. It's also possible to have other chains of command, such ones based on location.
The matrix organizational form might range from one where the project manager occupies a very powerful managerial position to one where he just serves as a coordinator. We will first consider a matrix where the project and functional managers have equal power in order to illustrate the organizational concepts.
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