Directorate of distance education master of business administration

Matrix Type Organization 
 
This is an attempt to combine advantages of both functional and 
product type organization structure discussed above.  Here the structure 
is based on more than one basis of grouping.  Equal emphasis is given for 
both the types of structure and both the types of managers viz., line and 

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staff.  This is called matrix structure. See Fig 2.1(c).
The establishment of the organization will vary according to the 
size of the unit, its geographical distribution, nature of products etc., 
Hence there is no one best method for universal application. 
MD 
GM*              
R & D 
GM*     
Marketing  
GM*     
Production  
GM*     
Finance  
GM*     
Personnel 
Admin. 
Proto 
DEV 
T.F. 
MR 
Sales 
Advt. 
Audit 
Accounts  
Budget 
Cant  
TPT  
Town 
ship 
Electro 
plating   
Machine 
shop    
Product 
 A    
Product  
B   
Product  
C   
Abbreviations 
M.D – Managing Director                 A & D – Research & Development 
GM – General Manger  
 
       MR – Market Research 
Proto – prototype    
                    TF – Technology Forecasting 
P&A – Personnel & Administration     TPT – Transport 
* - Staff managers 
ADVT – Advertisement
DEV – Development 
PR – Public Relations 
CANT – Canteen 
Fig. 2.1(c) Matrix Type Organization
PR
P & A
welfare
A
B
C

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