The Term Matrix Organisational Structure

Define the term matrix organisational structure and identify a specific organisation that uses a matrix organisational structure. Explain why you think this organisation chose a matrix structure over another structure in order to compete in its industry.

Outline what specific skills a manager in your chosen matrix structured organisation might need and explain why these might be needed.

The term matrix means an organisational structure that superimposes horizontal divisional structure over the vertical functional structure. This type of structure is usually considered when the company is operating within a highly unstable environment where there is a high level of uncertainty. Therefore, the speed of which the product or service needs to be developed depends on the organisational structure. An example for this is Hill & Knowlton, an international company based in the UK. It recently restructured into matrix organisational structure because it finds that a more sophisticated and credible structure was needed of their global practices and different industry segments along side with their geographical structure. A company works under public relation category which deals with nine different sectors; being from accounting and financial to technology and third sector, offering any consultations for clients. Hence, saying that, there are different cases around the world within the same category and it is important for H&K to categorize their regional area into divisional horizontal structure. At the same time, this allows the employees to work collaboratively with their boss under functional area, which allows bosses to focus on major issues; upper-level can work on their long-term strategic issues whilst the divisional can focus on the day-to-day tasks increasing success rate. There is also more delegation being emphasised because lower levels come in the direct contact with clients, so that there is a higher