December 2021

FACULTY OF ECONOMICS OF
UNIVERSITY OF ALGARVE

Bachelor's Degree in Business Management Course

Organization and Management of Companies

1st Year // 1st semester

MATRIX STRUCTURE

Discentes:Isabel Costa, n.º 75848

Jéssica Luz, No. 75887
Mariana Trindade, No. 75767
Teachers: João Rodrigues

December 2021
Index
Introduction ................................................................................... 4
What is a matrix structure? ............................................. 5
Features .5
The types of matrix structure .................................................. 6
Advantages.............................................................. 6
Disadvantages ............................................................................... 7
Maximization of the efficiency of a matrix structure ............. 8
What type of companies implement the matrix structure?... 9
Conclusion................................................................................... 11
Bibliographya ................................................................................ 12
Introduction
Many organizations and companies face the needs for structuring and management in
growth need to determine the responsibilities of each worker and what the
existing relationships in the workplace. That is why organizational structures emerged.
In today's world, it is necessary for organizations and companies to have a structure
well-implemented organizational structure that meets all your needs. The structures
organizational structures are a way in which a company organizes its employees, whether by
department, function or position. These show the relationships and hierarchies that make up a
company. All this contributes to provide a clearer image of the company, which ultimately
enable and facilitate its expansion and innovation.

In this work, we intend to expose a type of organizational structure, the matrix structure.
We will talk about what this type of structure consists of, what its main characteristics are, the
types of matrix structure, the advantages and disadvantages of adopting this structure, how it is that
we can maximize your efficiency and we will finally talk about the type of companies that use or
they have already used a matrix structure.
What is a matrix structure?
The matrix structure is an organizational structure, flexible, relative to others.
structures. It is more commonly used by companies to allocate resources and employees across the different
operations of the organization, as in their workplace, employees report to two
or more managers to oversee all aspects of a project. It represents, therefore, several
positions and hierarchies.

It can be said that this type of structure makes the organization more fluid and dynamic,
facilitating sector specialization and aiding in greater productivity and efficiency.
Companies of any size adopt this type of structure to make use of their resources in
daily activities in a more profitable way.

For example, an employee may have a primary manager to whom they need to report,
as one or more managers of a project they are working on, with employees who can
work and contribute to more than one project. This type of structure is used when there is
the need to share a worker's skills among the different departments, to
to conclude a project or a task. In addition, it also allows companies to use and
share internally a wide range of knowledge and strengths.

Figure 1 - Organizational chart of a matrix structure

Characteristics
The matrix structure stands out for its effective way of involving various departments of
a company, being a good option for those that require employee participation
from different departments in the execution of different projects.

The most notable characteristic of this structure is the mobility and orientation of various leaders.
for the same employee (one leader of their department and the other(s) from the project in question)
with different responsibilities and authorities, on different subjects.

Thus, there end up being two or more teams within a project, all with
different skills, which makes communication and the development of the process much more
efficient. These teams can work on more than one project, which ultimately turns out to be beneficial.
as the same employees can contribute to various different projects depending on the
company's need, which promotes greater adaptability of the organization.

The matrix structure adopts elements from other models, namely from a structure
funcional, com a existência de departamentos, e de uma estrutura divisional, por ter a ideia de
disaggregation by projects.

The types of matrix structure

Matrix organizational structures are composed of three types, the organization
weak, balanced and strong matrix:

• The weak matrix organization is a type of matrix structure in which there is a manager.
functional and a project manager, however it is the functional manager who has more
power is what ultimately makes the main decisions and oversees all the work that
it is being done.

• In a balanced matrix organization, the project manager and the functional manager have
the same level of authority and the employees report to both, in the same way.

• The strong matrix organization is a type of structure where the project manager has
more power than the functional manager. Furthermore, the project manager ends up
also for having primary control over resources used and the distribution of tasks.

Advantages
There are several benefits to implementing a matrix structure in the environment of
work. These benefits include:

• There's greater communication efficiency since there is the possibility of involving several
departments and the mobility of employees between projects. Also, it ends up
because there is greater ease of communication in all directions, which allows for
collaboration, in a more practical way in a project.

• As employees respond to various managers and not just to the functional manager,
the problems that arise within the company can be resolved in a way
quick and more efficient, as with the matrix structure, interaction throughout the
company, is increased.

• Greater motivation of employees, because employees end up having much more

autonomy and also participate and express their opinion in different projects. This
it is a type of structure that partially benefits from the characteristics of a structure
horizontal, which results in greater equality of opportunities regarding
 learning new knowledge. The opportunity for learning turns out to be
a motivation for many employees.

• More collective work, as employees work on various projects and with various
company departments. When working in teams, there is an increase in interaction among
employees which also allows for greater complexity in the work performed.

• Maximization of resource use, in that, the resources, and some

equipment is shared between several people. The same applies to the
employees, as they may be involved in various projects. This type of structure
allows resources to be maximized and also allows responding to needs
from the company easily and efficiently.

• There is the possibility of project managers working in their areas of

specialization, which allows for an increase in the contribution of your capabilities to the
overall project performance.

• For the greater professional and personal development of employees. This ultimately becomes
a consequence of employees working on a wide variety of projects. In
generally, requires them to use and learn different skills, because they are
exposed to various responsibilities within the job, resulting in the increase of
development of employees, as well as their ability to improve
your professional skills.

Disadvantages
The matrix structure system offers several advantages, but it can open doors to certain
unfavorable situations, such as:

• There may be potential conflict between project managers and functional managers, this
It can happen, especially if the managers do not all have the same clear vision.
from what they intend to do and the project they want to carry out or if there is a lack of
communication. Essentially, the fact that employees respond to managers with
different objectives and visions can generate internal conflicts.

• It can be difficult and confusing to understand the roles of authority, this is generated by the
the fact of having more than one responsible manager. It can lead to doubts regarding the
responsibilities of each manager and can generate more conflicts between managers.

• It can become difficult to measure employee performance and realize if they are
working efficiently or not. This happens because employees work in
several projects and end up having more than one function. In the same way, it becomes
It's difficult to blame someone when something in the organization doesn't go as expected.
 • It can lead to reduced effectiveness of employees when they are assigned to multiple tasks.
tasks, in various projects. In such situations, employees have to decide which
these are the most important tasks to carry out, as they have to organize the work in such a way
that can deliver everything in the proper conditions.

• An increase in indirect management costs, because this is a type of structure.

organizational which, in part, can be costly in terms of management. As
several managers are added to a project, there will, consequently, be an increase
of indirect management costs, as well as the overall budget of the company
it can also suffer some impacts.

Maximization of the efficiency of a structure

matrix
When a company decides to adopt this type of organizational structure, some may arise
problems that compromise its proper functioning and efficiency. That is why
there are measures that maximize the efficiency of a matrix structure, such as:

• Promote clear and assertive communication in all directions, ensuring support.

of all those involved (managers, supervisors, and employees).
• Define the vision, priorities, and goals that the organization has, and ensure that the
employees have knowledge of these.
• Ensure that managers and employees know what their responsibilities are and the
your role in the company.
• Resolve conflicts that may arise quickly and efficiently, so that they do not
extend further.
• Decide and use the type of matrix (strong, weak, or balanced) that best suits the
company context.
• Ensure that employees and managers understand how a matrix structure works.
• Ensure that there is communication and cooperation between the managers (functional manager and manager
of projects), to avoid conflicts and disorganization.
What type of companies implement the
matrix structure?
Generally, companies choose the type of organizational structure that best fits
adapts to the context of the company. To choose a type of organizational structure, a company
must take into account its nature and the market in which it operates and, in the same way, must take into account
consideration what structure allows you to be more efficient and productive. It is also important
it should be noted that this type of structure can be applied in companies of any size and
it is usually used in project-oriented organizations or organizations
complex.

This structure is appealing as it allows for the establishment of common and clear objectives and also
allows for the efficient sharing of resources and responsibilities, as was already mentioned, a
The employee has flexibility and can work in different departments according to the
organization's needs. Sometimes, this type of structure is used temporarily, by the
companies, to conclude a specific project.

There are several companies, such as Starbucks, Philips, and Texas Instruments that use
you have already used a matrix structure in the past. Among these three, we will talk in more detail.
at Starbucks, as it is one of the organizations that continues to use this type of structure
organizational.

Starbucks
Starbucks Coffee Company, the largest coffeehouse chain in the world, is a multinational.
North American company that has over 20,000 stores worldwide. This company is an example of a
organization that implemented the matrix structure. It has, essentially, four elements that
define your organizational structure: the functional hierarchy, the teams, the organization by area
geographic and the organization by product groups.

• Functional Hierarchy
There are several functional divisions (finance, marketing, and human resources),
each with a responsible person. The functional divisions are responsible for applying,
monitor and ensure that the company's policies are complied with and applied to all
stores, in order to ensure quality and uniformity. This hierarchy facilitates the
control and monitoring help promote the overall development of the organization.

• Teams
In the various sectors of the company, there are teams. These play a crucial role in
financial success and company growth. In Starbucks cafes, the teams are
responsible for public service, that is, the efficiency and quality of the service
depends on the individuals that make up the team and depends on their motivation and satisfaction
same.
• Organization by geographical area
If we consider the size of this company, we realize that there is a need for
to have an organization by geographic area. In 2011, Starbucks defined 3 areas
geographical:
oAmericas
China and Asia-Pacific
Europe, Middle East and Africa
These geographic areas each have a person in charge.

The managers of the different stores have more than one person in charge (this being a
characteristic of the matrix structure), that is, in this case they must report to the responsible person
from your geographical area and to one of the persons responsible for the functional divisions.

• Organization by product group

In this specific case, this company has several product groups, such as for
example:
Coffee and related products
The bakery and confectionery
Merchandising
This organization by product group allows for innovation, development, and improvement.
products from each group. This is beneficial as it allows for a quick and efficient response to
any threats or needs that may arise.
Conclusion
With all the complexity involved in managing an organization, it is important to adopt
an organizational structure. Throughout this work, we realized that the matrix structure is
characterized by its flexible model and by being a combination of a divisional structure and a
functional structure. This type of structure may seem appealing as it allows for mobility of
resources and skills for the different projects of the company. It has several advantages, such as the
possibility of maximizing resources and allowing to respond to the needs of the organization and the
easier market, as it facilitates adaptability, but it also has some disadvantages
how the fact that it can become complex and can generate some confusion and conflicts, if
there may be a lack of communication. In short, we were able to understand that any company can
implement a matrix structure and that some of the largest companies in the world have or have already
they had a matrix structure or have organizational structures based on the structure
matrix. We also understand that this type of structure can be useful for companies that
they want to make it more flexible, but without compromising efficiency.
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