Matrix Structure Diagram Advantages, Disadvantages & Examples

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Posted by Akiko | 01/08/2021
The matrix structure diagram is one of the most commonly used reporting structures that a company can implement to emphasize efficiency, creativity, and innovation.

Read on to learn what is a matrix structure diagram, matrix structure diagram examples, and the advantages and disadvantages for both company and staff.

Overview of Matrix Structure Diagram

Matrix Organizational Chart

The Matrix Structure Diagram is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. It is often used when the firm has to be highly responsive to a rapidly changing external environment.

Advantages & Disadvantages of Matrix Structure Diagram


  • Better coordination and control
  • Adaptable to dynamic environment
  • Maximum use of resources
  • Participative management
  • Sufficient time to top management


  • Difficult in balance: a conflict of loyalty between line managers and project managers over the allocation of resources.
  • Costly structure: costs can be increased if more managers (ie project managers) are created through the use of project teams.

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Matrix Structure Diagram Examples

municipal Matrix Structure Diagram

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