Business Structure Basics 21

Download as pdf or txt
Download as pdf or txt
You are on page 1of 1

5 Common Business Organizational

Structures
1. Matrix Organizational Structure

A matrix structure provides for reporting levels both horizontally as well as


vertically. Employees may be part of a functional group (i.e. engineer) but
may serve on a team that supports new product development (i.e. new
album). This kind of structure may have members of different groups
working together to develop a new product line.

For example, a recording engineer who works for a music publisher, may
have engineers who report to him but may also use his expertise and work
with teams to develop new music albums.

The advantage of a matrix organizational structure is that employees have


responsibility not only for their department but for organizational projects.
A challenge with this type of structure presents itself when employees are
given direction from two different managers and they need to prioritize their
work responsibilities.

You might also like