CHAPTER 3:- Organization Structure

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Matrix Organizations (Nov. 2005)

 

Around 1950s, some large organizations realized that the divisonalized organization structure was not working well.

 

It did not link people in various divisional and corporate positions and hence the synergy of being part of a large corporation was lost.

 

To combat this problem, many organizations began to implement Matrix Organizations.

 

Instead of replacing the divisional structure, a matrix structure overlays the divisional structure.

 

Often in matrix management there is a distinction between the solid line manager and dotted line manager.

 

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