Matrix Management

The use of matrix organization structures in businesses of all sizes is not a recent phenomenon. Case studies on the design and use of matrix hierarchies date back to the 1960s and early 1970s when companies such as Xerox, General Electric, and Dow Corning were among the first to tout the benefits of cross-functional, matrix-driven organizational structures. For these large conglomerates, the allocation of key resources and functional roles across multiple business lines allowed greater productivity with fewer resources, which ultimately translated into a more favorable bottom line.

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