An organizational design called a matrix structure is currently a popular and valued contemporary structural design that attempts to maximize the strengths and minimize the weaknesses of functional and divisional structures (Gibson, Ivancevich, Donnelly & Konopaské, 2009). The matrix organization superimposes a lateral structure focused on coordinating products or projects on top of a vertical functional structure (Cummings, 2009). In practical terms, matrix design combines the basics of functional and product departments (Gibson, et al., 2009). Matrix organizational design was originally created in the aerospace industry, where changing customer requirements and technological conditions required managers to focus on the lateral relationships between functions in order to develop a flexible system of resources and processes and achieve project objectives (Cummings, 2009). Today, organizations such as IBM, Hughes Aircraft, ITT, Prudential Insurance, TWR, Texas Instruments, and Caterpillar Tractor are just some of the users of the matrix system (Gibson et al., 2009). Although the precise meaning of matrix organization differs in practice, it is generally considered to be a balanced arrangement between functional organization and organization by product, between departmentalization by function and by product. Matrix organizations achieve this preferred balance by layering a horizontal structure of authority, control, and communication on top of the vertical structure. For example, matrix design appoints specialists from different functional departments to work, typically, on more than one project led by a project manager. The matrix structure is very different from the traditional structure in that it creates a dual chain of command. Employees...... middle of paper ...... people work together in the organization which makes the structure successful or unsuccessful. This includes implementing structure and strategy correctly - and this is often the part that is overlooked (Global Integration, 2011)..ReferencesCummings, W. (2009). Organizational development and change. (9th ed.). Mason, Oh. : South-Western Cengage Learning. Gibson, J. I. (2009). Organizations, behavior, structure, processes (13th ed.). International edition. Singapore: McGraw Hill. Global integration. (2011). Matrix structure and organization. Retrieved from http://www.global-integration.com/what_we_do/matrix_organization_structures.html.Robbins and Coulter. (2007). Management. Upper Saddle River, NJ: Pearson Prentice Hall. Spector, B. (2010). Implementing organizational change: from theory to practice (2nd ed.). Upper Saddle River: Pearson Prentice Hall.