Business – 7.1 Organisational structure – Types of structure | e-Consult
7.1 Organisational structure – Types of structure (1 questions)
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How the matrix addresses limitations
- Dual reporting lines combine functional expertise with product/project focus, reducing silos.
- Improved flexibility – resources can be shifted quickly between projects to meet market demand.
- Enhanced communication across departments, fostering innovation and faster decision‑making.
Key challenges of the matrix
- Role ambiguity: Employees may be unclear about whose instructions take priority, leading to conflict.
- Increased managerial workload: Dual managers must coordinate and resolve disputes, raising overhead costs.
- Potential power struggles: Functional and project managers may compete for resources and influence.
- Complex performance appraisal: Assessing contributions across two dimensions can be difficult.