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The idea of matrix structure was originated from aero space technology where this type of structure was used for specific projects. It us useful today for developing a new product, building factory, etc. This structure is purely temporary and in formed to attain specific objectives within a specified time.

This structure is also called as “Grid structure” or Project or Product Management. The matrix structure attempts to merge traditional line authority for decision- making with a project oriented, mulit-disciplinary and team based approach. In a sense, it is in the combining of functional and product forms of departmentalization in the same organizational structure.