Explain matrix organisation.

Matrix Organisation: it is used when an organization has to handle a variety of projects, varies from small to large. While a pure project structure is superimposed on a functional structure therefore the result is a matrix structure. The project structure gives a horizontal lateral dimension to the traditional vertical orientation of the functional organization structure as specified in the following diagram.

This organization is created by merging (as two complementary structures) pure project organization and functional organization. The project forms are composed of persons drawn by the functional departments for the period of the project.

While their assignment is over, they return to their respective departments. Within continuation of the project, that persons have two bosses - one, by the functional department and second of the concerned project.