Final answer:
A matrix structure is when employees report to two different managers, usually one for the product line and another for the functional line, blending functional and divisional structures for more flexibility and collaboration.
Step-by-step explanation:
When employees report to two managers, one for the product line and one for the functional line, this is an example of a Matrix structure. This organizational setup is characterized by a dual reporting system where employees are accountable to more than one superior, often a functional manager and a project or product manager. The matrix structure combines elements of both functional and divisional structures to gain the benefits of both.
In the modern workplace, many organizations are shifting away from rigid hierarchical structures and moving towards more flexible and collaborative team-based models. The goal is to leverage diverse skills and knowledge, particularly in response to shifts in technology, economics, foreign competition, globalization, and demographics. However, not all team structures lead to increased productivity, and therefore, the work within these structures is actively researched to understand the best methods for organization and management.
Despite the popularity of flat organizational structures, the matrix remains relevant for its ability to respond swiftly to changes. It facilitates communication and cooperation across departments and enables organizations to deploy their resources efficiently. This dual authority network is part of the modern evolution of workplace reporting structures.