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A Matrix organization is an organization that has a matrix structure. Matrix structure is one of the many structures that an organization can take. Instead of having a formal pyramidal structure, it is based on both the axes.
There are dual lines of authority, responsibility and accountability in this structure. Thus a person is answerable to two bosses instead of one. Normally a matrix structure is organized according to product groups and strategic business units.
There are teams of employees from functional groups such as manufacturing, R & D, sales, finance etc who report to a manager for their overall performance in a certain product category. Apart from that these teams are also reporting to their respective functional bosses.
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