Matrix/Team-based Organisational Structure

  • Created by: ccorr
  • Created on: 06-05-20 13:51

Matrix/Team-based Organisational Structure


  • 1. Greater unity across the business. It is a team based structure with expertise drawn from different departments across the business. This greater interaction across departments will lead to a greater understanding of individual departments.
  • 2. Better decision making- all team members have an input into decision making and problem solving which allows for greater output and productivity. New ideas will involve and better decisions will be made.
  • 3. A matrix organisation structure should help with the businesses tactical planning as it focuses on projects.
  • 4. Increased motivation- employees feel valued when they are part of a project team.


  • 1. Unclear chain of command- each employee can have two managers, the project manager and the functional manager which could lead to confusion and conflict.
  • 2. Slower decision making could arise- getting the agreement of the team during consultation stage may be slow.
  • 3. This structure would not be suitable in a crisis or emergency situation where tough decisions have to be made quickly.
  • 4. Training costs- employees working in teams need training in areas such as teamwork and effective communication. These training programmes increase business costs.
  • 5. It may take the team longer to become productive, due to the lack of trust of employees between different firms.


A matrix structure is generally set up in a business to carry out specific projects. This organisation structure would not be suitable for a business in an emergency situation needing to make tough decisions very quickly. 


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