What type of structure groups people and resources by both function and product simultaneously?

The matrix structure is designed to combine two organizational dimensions, typically function and product, which allows for greater flexibility and enhanced collaboration. In this structure, individuals can report to more than one manager, often a functional manager and a product manager. This dual reporting relationship facilitates more efficient resource allocation, improved communication, and stronger interdepartmental cooperation.

By grouping people and resources in this way, organizations can respond more effectively to changing environments, market demands, and project needs. This structure is particularly beneficial in industries where both high expertise in specialized areas and rapid adaptability to diverse product lines are needed. It leverages the strengths of both functional and product-based structures, promoting innovation while maintaining operational efficiencies.

Other organizational structures, such as functional, market, and geographic, do not achieve this dual grouping. A functional structure focuses solely on specific functions within the organization, a market structure organizes teams by market segments or customer bases, and a geographic structure organizes teams based on locations. Thus, the matrix structure distinctly stands out due to its simultaneous grouping by both function and product.