Also known as
Project Management structure, it fosters the use of teams created from various departments, to achieve goals or create products. This type of structure can be beneficial to Spectrum, as it combines aspects of both a functional organization and project team structure. It effectively coordinates resources for various projects and allows personnel to retain membership on both the team and their functional departments.
However, the matrix structure has some inherent communications challenges. One such challenge is line of authority and resource allocation ambiguity as personnel report to both their functional manager and the team/project manager. Confusion as to which manager’s authority takes priority regarding tasking can be addressed through the use of pre-established lines of authority, project plans, resource allocation plans, and timelines, as coordinated between the functional and team management. Ambiguity surrounding resource allocation can lead to personnel disputes on the number of resources allocated to respective projects. Clearly defining the level of capital, resources, and lines of authority at the beginning of each project, offers a viable solution for this dilemma. A second communication challenge is the need for a common terminology. New terminology or
hinder productivity of the newly formed team. Management can address this by scheduling on-the-job or external training, as part of the project timeline. A third challenge is the lack of peer interaction from functional teams, due to logistics, if geographically dispersed. To combat this, management should ensure that periodic virtual or in-person team meetings are conducted, allowing personnel to stay abreast of developments in their functional area of expertise and promotional opportunities.
Multidivisional structure was also developed as a response to the emergence of large companies and multi-national