Decentralised and Matrix Structures
Decentralised organisations flip the script by pushing decision-making power down to individual departments and branches. Local managers get the freedom to respond to their specific market conditions using their insider knowledge - and staff love the creative freedom this brings!
However, this freedom comes with risks. Branch managers might not have the experience of head office executives, leading to costly mistakes. Different branches might even start competing against each other instead of working together, making it harder to maintain a strong company culture.
Matrix structures create temporary cross-functional teams for specific projects, pulling together people with different skills and backgrounds. Once the project ends, everyone returns to their normal roles.
Example: A car manufacturer might create a matrix team with engineers, designers, and marketing experts to develop a new model.
These structures are fantastic for innovation because diverse viewpoints spark creativity, and team members learn valuable new skills from each other. The downside? They're expensive to run, and team members often struggle with conflicting priorities when they're reporting to both their regular manager and the project leader.