Business Matrix structure

When would a company choose a matrix structure? What are the problems associated with managing this structure, and why might a product-team structure be preferable?

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...ucture also facilitates rapid response to change in two or more environments. Matrix Structures are flatter and more responsive than other types of structures because they permit more efficient exchanges of information. Aside from speed and flexibility, matrix organization results in a more efficient use of resources as highly specialized employees and equipment are shared by departments.

The problems associated with having a Matrix Structure include the following: The Matrix Structure is temporary as it is a constantly changing form of management. Projects are created and dissolved and workers are redistributed among them while managers are continually hired, reassigned and dismissed as projects require. A Matrix Structure can last only as long as a project lasts. There can be varying loyalties as professionals work for multiple managers. If a Matrix Structure becomes too big, it can be difficult to manage and in-fighting can occur as managers compete for the time and attention of workers that they share. Matrix Structures can be typically expensive to maintain due to complex reporting requirements. Many workers become disturbed by the lack of a chain of command, results in role ambiguity and conflict. Matrix management needs a workforce with diverse set of skills, staff with strong interpersonal abilities ...