The matrix structure as an alternative to the departmental structure for colleges and universities is discussed, and the matrix system at Middlesex Polytechnic in England is used as illustration. The major impact of the introduction of a matrix structure is its effect on teaching activities within the institution. The matrix structure formally separates the roles of subject leader and course leader. The role of subject leader is to service the courses by providing the teaching staff. The matrix is designed to make the course, rather than the department, the basic unit of organization. Insofar as research in higher education is essentially an individual activity separately funded, the effects of a move from departmental to matrix organization are likely to be slight. For the library, the matrix will mean ending the familiar patterns of contact with departmental representatives. New links must be established with course and subject staff. The matrix may force out into the open difficult decisions over conflicting demands (especially teaching versus research). The following influences on organization structure in higher education are considered: people, technology, coordination, environment, size, dispersion, and tradition. (SW)