Matrix structure is the realisation of two dimensional structure which emanates directly from two dimensions of authority. From which of the two, a is martix structure is created? 

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UGC NET Paper 2: Commerce 13th June 2023 Shift 2
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  1. Functional and divisional 
  2. Functional and project 
  3. Functional and line 
  4. Divisional and line 

Answer (Detailed Solution Below)

Option 2 : Functional and project 
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UGC NET Paper 1: Held on 21st August 2024 Shift 1
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The correct answer is Functional and project.Important Points

  • A matrix structure is a combination of two or more organizational structures, such as functional and project management.
  • In a matrix structure, employees report to both a functional manager and a project manager.
  • The functional manager is responsible for the employee's day-to-day work, while the project manager is responsible for the employee's work on a specific project.

The two dimensions of authority in a matrix structure are -

  1. Functional authority - Functional authority is the authority to make decisions about the work of a department or function. Functional managers have functional authority over their employees.
  2. Project authority - Project authority is the authority to make decisions about the work of a specific project. Project managers have project authority over the employees assigned to their projects.
  • The two-dimensional structure of a matrix structure is created by the intersection of functional authority and project authority.
  • This can be visualized as a grid, with functional departments on one axis and projects on the other axis.
  • Employees in a matrix structure are located at the intersection of their functional department and the project(s) they are assigned to.
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