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The Benefits of Matrix Structure and Project Reports

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Which type of organizational form fosters teamwork in the best manner? What are the major reasons for having project managers report higher and higher in the organizational structure?

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The solution discusses the benefits of matrix structure and project reports.

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Business Structure for Foster Teamwork

There are three main structures - functional, divisional and matrix - that exist in current organizations. The matrix organization form helps to foster teamwork in the best and most appropriate manner. A matrix organization is structured in such way that it combines the best of functional and divisional arrangements while, in functional form, several functions of an organization such as finance, purchasing, marketing and technical etc. are divided separately with expertise. Due to this structure, the above areas interact only for some time and function independently so this does not facilitate team work (Daft, 2010). In contrast, the matrix structure helps connect employees and managers from different departments in order to achieve corporate objectives.

For achieving organizational goals, an effective exchange of information among the employees of different departments is quite essential. In matrix structure, the different departments interact regularly with each other and work together for solving issues accordingly. This effective communication is provided by matrix structure as it assigns clear roles and responsibilities to ...

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