matrix organisational structure Flashcards
matrix organisational structure
beneficial for organizations that:
- operate in complex dynamic environments
- where multiple lines of communication and expertise are necessary (report to more than one boss - functional managers & project managers, and are situated in cross-functional teams)
- commonly found in industries where projects require diverse expertise, rapid adaptation, and collaboration across functional areas.
types of organisations that could benefit
1) tech companies
2) healthcare institutions e.g. hospitals with specialised units
3) Project-based industries construction companies
technological companies
- company where innovation is key
- matrix structure allows for cross-functional teams to work on projects e.g. in Google, different engineers from different departments collaborate on various projects
- enables pooling of diverse skills, fostering innovations, and adapting to technological advancements.
healthcare institutions e.g. hospitals with specialized units
- hospitals with specialized units like oncology, cardiology, or surgery departments can utilize a matrix structure
- medical professionals work within their speciality units, but also collaborate in teams for patient care, research, or improving healthcare practices
project based industries e.g. construction companies
- construction companies managing large-scale projects often employ a matrix structure.
- engineers, architects, and contractors work together on a project-by-project basis ensuring efficient coordination and integration of different expertise for successful project delivery.
benefits of matrix structure
- enhances collaboration - teams with diverse expertise collab, fostering innovation and problem-solving
- optimized resource utilization: efficient utilization of specialized skills across projects
- knowledge sharing - facilitates the sharing of best practices and expertise across function areas
challenges
they can present challenges in terms of managing the complexity of reporting relationships and potential conflicts among managers