MATRIX
DEPARTMENTALIZATION is a hybrid organizational structure in which two or more
forms of departmentalization, most often product and functional, are used
together. Law firms used this. An example would be Citigroup International
using geographic (company managers in one region reporting to CEOs and
corporate in that region) and customer (the different departments will report
to their heads, such as consumer banking or consumer finance businesses in
those countries).* The differences with matrix departmentalization is that most
employees report to two bosses from each core part of the matrix, matrix
structures lead to much more cross-functional interaction than other forms of
departmentalization, and it requires significant coordination between managers
in the different parts of the matrix.
Advantages of the
matrix organizational structure
There are several
advantages to using the matrix organizational structure. One benefit of the
matrix structure is that it allows cross-collaboration between staff and
departments that may not always have opportunities to work together. There are
several other key advantages as well:
Collaboration between
different departments
Combines project and
functional management structures
Allows
interdepartmental communication
Employees can develop
new skills
Team members and
managers keep their functional roles