The differences between a divisional organization and matrix organization?

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2026-03-05 09:15

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Matrix Structure
  • The matrix structure groups employees in the fields of function and product. Typically the matrix structure is focused around individual products, product lines or functions. For example, Product C and Product D separate structures with different chains of command: Each might include sales support, IT support, customer service support and operations support. The matrix structure is complex but allows for a focused approach to both products and functions.

Divisional Structure
  • The divisional structure is separated by nearly independent departments along the lines of product, market or geographic locations. The larger the organization, the more likely it has a divisional structure, which is simpler to manage and gives clearer lines of control. A company might have separate divisions for each product, each market area the company sells in or each geographic location where operations reside

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