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A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships. Matrix structure is a type of Organizational Structure that is used in large multinational companies but this can create power struggles because most areas of the company will have a dual management. While matrix organizations are effective at coordinating complex and interdependent activities, there is considerable opportunity for confusion because of dual chains of command. The organization structure is often unclear and power struggles develop.
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