Matrix Organization Structures in Business: SAP R/3 Configuration Guide

Shared by SteadyAtlas9417 November 2, 2026 PDF
Page 1 shows the heading 'Matrix Management' and text on the use of matrix organization structures in businesses.
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About this document

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6 pages
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$6 one-time, yours to keep
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Subject
Business Management, Information Technology

This document discusses the use of matrix organization structures in businesses to track resource use across traditional functional boundaries. It explains what a matrix organization is and how to configure a product-based matrix using SAP R/3’s Organizational Management functionality.

What's inside

  • Introduction to matrix organization structures
  • Comparison of traditional and matrix organizational structures
  • Benefits of matrix organizations
  • Configuring a product-based matrix in SAP R/3
  • Defining matrix types and relationships in SAP R/3
  • Establishing valid relationships for matrix reporting

Who it is for: For students studying business management, organizational structures, and SAP R/3. (Undergraduate)

#business decisions #business strategy #matrix organization #organizational structure #product-based matrix #resource tracking #sap r/3

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Summary

Matrix organization structures in business allow for efficient use of resources across multiple projects or products. Students learn how to configure these structures using SAP R/3, and see examples of traditional and matrix organizational charts.

Matrix Organization Basics

Matrix organizations avoid duplication of skills and responsibilities. They allocate skills or resources across sectors as needed, creating a multi-functional team approach.

Matrix Structures in SAP R/3

SAP R/3 can supplement an organizational hierarchy with a matrix structure. It allows displaying and reporting on relationships and task assignments among entities.

Configuring a Product-Based Matrix

Configuring a matrix in SAP R/3 involves creating custom objects and relationships. It also involves specifying allowed relationships and evaluation paths.

Displaying the Matrix Structure

Once configured, the matrix structure can be viewed using transaction PPMS. The matrix shows valid relationships between organizational units and product lines.

Key terms

Matrix organization
A structure that allocates skills or resources across sectors as needed.
SAP R/3
A software system used to configure and display matrix organization structures.
Evaluation paths
Instructions that tell R/3 to look for particular object relationships and report back the results.
Relationships
Unique codes that define the interaction between two different objects.
Object types
Categories of entities in the organizational structure, such as organizational units or product lines.
Transaction codes
Commands used in SAP R/3 to access specific functions, such as PPMS for displaying the matrix.

Questions this document helps with

  • What is a matrix organization structure?
  • How does SAP R/3 help in configuring matrix structures?
  • What are the benefits of using a matrix organization?

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