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matrix 
organisation actually 
crosses
 
functional and 
product/customer/project organisation. 
Project/Product
Manager B
Project/Product
Manager C
Project/Product
Manager A
Sales
Dept
Finance
Dept
Production
Dept
Distribution
Dept
R & D
Dept
Marketing
Dept
Adapted from: (Mullins, 2002: p.551) 
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PART B: BUSINESS ORGANISATION STRUCTURE, FUNCTIONS AND GOVERNANCE 
 
134
 
The employees represented by the dot in the above diagram, for example, are responsible to: 

The finance manager for their work in accounting and finance for their functional department; 
and 

The project manager C for their work on the project team: budgeting, management reporting and 
payroll relevant to the project, say. 
Advantages 
of matrix organisation include: 
(a) Greater 
flexibility
of: 
(i) 
People
. Employees develop an attitude geared to accepting change, and departmental 
monopolies are broken down. 
(ii) 
Workflow and decision-making
. Direct contact between staff encourages problem solving 
and big-picture thinking. 
(iii) 
Tasks and structure
.
The matrix structure may be readily amended, once projects are 
completed. 
(b) 
Inter-disciplinary co-operation
and a mixing of skills and expertise, along with 
improved 
communication
and 
co-ordination
(c) 
Motivation and employee development
: providing employees with greater participation in 
planning and control decisions 
(d)