Matrix Structure

Matrix structures are alternatives to the centralisation/decentralisation models for organisational structure. In organisations subject to rapid change, traditional hierarchies and functional silos may be unresponsive to the need for change. In a matrix structure, functional staff report to the head of their professional discipline, e.g. procurement, finance or human resources, but work in multifunctional project teams alongside other disciplines and report to another manager. One of the weaknesses of matrix structures is that staff have two sets of objectives and two supervisors. For example, the procurement staff may be functionally accountable to the Chief Procurement Officer [CPO], but work in devolved multifunctional project teams, where they are accountable to the project manager. The procurement focus may be on releasing value, while the project team may be focused on achieving project timescales, and this may create tensions for practitioners working in a matrix structure. See also Structure, Federal.

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Discover the world’s largest Glossary of Procurement terms

With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.