Traditionally larger businesses have been organised into departments or 'functions'.
What functions may there be in this head office building?
This video shows a traditional management structure by department / function:
More on Functional management here.
Matrix management
Managing cross functional, cross business groups and other forms of working that cross the traditional functional structure.
Employees are put into project teams with individuals from other departments to find a solution to a problem or they are working on an innovative new product.
Potential benefits:
1. Projects may be completed more quickly as different parts of the business are working together.
2. It enriches the experience of every team member. They learn new things, meet new people. It is likely to be motivating.
Potential problems:
1. Matrix team members will have two bosses. The original boss from the part of the firm where the employee normally works and the team boss.
2. Conflicting demands from these two bosses or between team members.
More on Matrix management here.
