The matrix structure occurs when product departmentalization is superimposed on a functionally departmentalized organization. Authority flows both down and across. Figure 7.6 illustrates a typical matrix organization. The matrix organization has several advantages. Added flexibility is probably the most obvious advantage.
Motivation improves because people become more deeply committed to their special projects.
The matrix organization also has several disadvantages. Having employees report to more than one supervisor can cause confusion about who has authority in various situations. The Cross-Functional Team Structure. The cross-functional team is a group of employees from different departments who work together on a specific project. This organizational method is especially effective when developing an entirely new product or service.