Which type of organizational structure combines functional and divisional structures?

The matrix structure is designed to integrate the strengths of both functional and divisional organizational structures, allowing for increased flexibility and responsiveness to changing environments. In a matrix structure, employees report to both a functional manager and a project or product manager. This dual reporting structure helps organizations balance the benefits of specialization provided by functional departments—such as finance, human resources, and marketing—with the focus on specific products or projects offered by divisional structures.

One primary advantage of the matrix structure is that it facilitates collaboration and communication across different parts of the organization, fostering innovation and a more dynamic approach to problem-solving. This synergy allows for better resource allocation, as teams can be formed from various departments to tackle specific tasks or projects, leading to improved outcomes and efficiency.

In contrast, the network structure emphasizes outsourcing and strategic alliances rather than direct control over a wide range of functions, which can lead to less cohesion in comparison to the matrix model. The team-based structure focuses on collaboration within small groups without the dual-reporting aspect that characterizes matrix organizations. Finally, the hierarchical structure is traditional and highly defined, emphasizing a clear chain of command within functional areas but lacking the flexibility and cross-functionality that a matrix structure provides.