The matrix structure is a type of organizational structure in which individuals are grouped simultaneously by two different operational perspectives.

Matrix structures are inherently complex and versatile, making them more appropriate for large companies operating across different industries or geographic regions.

A disadvantage of the matrix structure is the increased complexity in the chain of command when employees are assigned to both functional and project managers. This increase in complexity can result in a higher manager-to-worker ratio, which can in turn increase costs or lead to conflicting employee loyalties.

It can also create a gridlock in decision making if a manager on one end of the matrix disagrees with another manager. Blurred authority in a matrix structure can result in reduced agility in decision making and conflict resolution.