Matrix and entrepreneurial structures
Matrix structure
Matrix structure is often used when A system whereby people from different areas of an organization work together as a team. teams are created to run a project. Team members may come from different disciplines. The team will disband when the project is complete.
Advantages
- a good way of having different viewpoints and skills involved in a project
- provide staff with an opportunity to learn new skills from other members of the team which may lead to greater motivation and productivity
Disadvantages
- it is very expensive
- team members may have priority issues when having to report to two bosses (their regular line manager and their project leader)
Entrepreneurial structure
Entrepreneurial structure is used in Small - Medium Enterprises. This is when the major decisions are made by one or two key personnel. Usually in small businesses this will be the owner or the entrepreneur.
Advantage
Decisions are often made quickly by the entrepreneur who is experienced within the business.
Disadvantage
There is a workload issue for the decision makers as responsibility for many tasks will fall to them.