Matrix approaches try to resolve those silos with a vertical and horizontal model of management. This can create power struggles because most areas of the company will have a dual management-a functional manager and a product or divisional manager working at the same level and covering some of the same managerial territory.įunctional and divisional models inherently create organizational silos. Typically used in large multinational companies, the matrix structure allows for the benefits of functional and divisional structures to exist in one organization. The third main type of organizational structure, called the matrix structure, is a hybrid of divisional and functional structure. Alexis Writing’s article “Different Types of Organizational Structure”, gives a good description of the matrix challenge. This takes hard work and active engagement to manage. Traditional business management models are not keeping up with the need to be more adaptable to the customers and markets they serve, thus the introduction of matrix management models.Ī matrix model can be extremely effective if you can resolve the inherent conflict it creates. In addition to the shift to a global model, businesses require a matrix to link together the conventional organizational structures of functional and divisional models. It is harder and harder to get clear line of sight into and accountability for how a business is operating. Today’s business is global, spanning across supply chains, project delivery chains and changing fundamental business models.

Define silo for business