Functionally-based Project-based Product-based Market-based Matrix-based Process-based Channel-based Category-based
Operating models
Matrix-based
Organisation of project teams with members retaining functional area reporting relationships and identification.
Operates best in a dynamic, unpredictable environment.
Advantages
- Offers great flexibility
- Encourages interfacing across departments
- Creates strong problem-solving or goal focus
- Uses staff resources efficiently
- Creates vertical and horizontal information flow
Disadvantages
- May result in higher overhead costs because of doubling the number of managers
- May slow down the decision-making process
- Increases complexity
- Increases potential conflict between functional and project managers
- Results in ambiguity for employees in reporting relationships