Matrix Structure

• What is a matrix organisational structure?

  Employees report both a functional manager and a product-based manager
• What are the advantages of using a matrix structure?

  • Encourages collaboration across different departments
  • Efficienct use of resources - staff can be allocated to different projects when needed
  • More innovation and flexibility - different expertise working together
  • All advantages from a functional and product-based structure
• What are the disadvantages of using a matrix structure?

  • Complex management structure - employees report to two managers
  • Slower decision-making
  • Could lead to problems with authority between two managers
• When is a matrix structure most suitable?

  • Rapidly changing markets
  • Complex projects that require specific expertise
  • Engineering industries such as aerospace (e.g. Boeing)
• What is an example of a business that uses a matrix structure and why?

  Boeing because:

  • Faster innovation - aerospace industry is highly competitive (e.g. Airbus)
  • A matrix structure breaks down functional silos and enables experts to work together across projects, leading to faster decision-making