matrix model

Organizational structure adopted by many multinational companies in an attempt to deal with the difficulties of managing large organizations across different regional markets. The concept was developed by the electronics company Phillips after World War II. Matrix management represents a middle way between centralization and decentralization, and provides for multiple reporting along geographical and functional lines. A marketing manager in one country will report to a boss in his own country, as well as the marketing head in the company's home country. Instead of a linear chain of command the structure takes the form of a multi-dimensional matrix. An organization using the matrix model may include regional managers, functional managers, country managers, and business sector managers.