The Bureaucratic Structure. A bureaucratic structure is based on a formal framework of authority that is carefully outlined and precisely followed. An organic structure is a management system founded on cooperation and knowledge-based authority. The matrix structure combines vertical and horizontal lines of authority. The matrix structure occurs when product departmentalization is superimposed on a functionally departmentalized organization.
Authority flows both down and across.
Figure 7.6 illustrates a typical matrix organization. The matrix organization has several advantages. Added flexibility is probably the most obvious advantage. Motivation improves because people become more deeply committed to their special projects. The matrix organization also has several disadvantages.