Matrix structure becomes more effective in the organization in which multiple, complex and independent activities are conducted. Usually, we find this type of mstructure in college, university, hospital, advertising agency etc. By exchanging ideas, they convert the special resources of the company into special products, for example – An institution with matrix structure has various functional departments like - academic, administrative, library, teaching etc. various courses are conducted in it like - B.A., B.Sc, B.com, M.A., M.Sc, Phd etc. which are its products. Therefore, there are dual responsibility of its members, one to their functional department and other to their product group. Thus a lecturer, who teaches psychology is responsible to the students of B.A. and M.A. (psychology) and also responsible to the college principal and to the head of the department.