In matrix structure, there is solid reporting line to one boss and dotted line relationship with one or more other bosses. The matrix structure is strangely ambiguous to those accustomed to simple linear reporting lines. In MNCs, the local business heads report directly to global business heads and have a dotted relationship with the country head whose role is limited to governance. In decenralised matrix, business heads report to the country head and have dotted relationships abroad. There could be a mix of the two. There could be an implicit matrix, and one has to handle the ambiguity. In global companies, dual reporting is the norm. One has to strike the right balance between the global and local. The matrix is a dynamic, living thing. A certain level of maturity is expected in a person to get into a multiple reporting format. It is all about collaboration, transparency and communication.
A CEO in a matrix structure is less empowered. In appointments too, he has to consult his global business heads. To implement global strategies, MNCs prefer a matrix structure. It provides talented employees greater chances of advancement. The matrix structure is common to hotel industry. The property is an individual entity has its own functional structure. The General Manager is their boss. However, they maintain a dotted line relationship with their counterparts in the regional headquarters.