Rather, the majority of an organization’s resources are allocated towards specific projects, and the entire staff works towards completing them. In a projectized organizational structure, a company isn’t divided into different departments. The people working in each of these departments report to one manager, who then reports on the whole of the department to a senior executive. Basically, the entire business is divided into smaller sections, each responsible for a specific function.įor example, a company might have different departments for IT, marketing, human resources, etc. You’ve most likely worked at a company that uses this system. Functional Organizational StructuresĪ functional organizational structure is the most common. To fully understand them, we must first explain the two different approaches they bring together. Matrix organizational structures are a hybrid type of company hierarchy. When built properly, every employee will know exactly what their individual job is and who they should report to. The organizational structure of a company is the way in which hierarchy is defined. Let’s dive right in! Matrix Organizational Structures: A Definition In this blog post you’ll learn about what matrix organizational Structures are, their pros and cons, and when they should and shouldn’t be used. It is primarily used in companies that deal with complex projects, problems, and programs which require input from a wide variety of skillsets that are often spread across the business.īecause of the interdisciplinary nature of this organizational structure, problems can easily be addressed from a wide variety of different approaches, thus creating more fully considered solutions. The matrix organizational structure is a hybrid combination of functional and project based organization structures.
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