Abstract:

This study explores the possible effectiveness and challenges of matrix organizational structure and cross-functional teams embedded into that matrix. The basic concepts of matrix organization were analyzed. The author analyzed the literature dedicated to the subject of cross-functional teams and examined real cases of companies which applied matrix structure. Based on literature review the advantages and disadvantages were figured out. Author points out that every organization should react immediately to the rapidly changing environment and the matrix structure is good approach to succeed. Having reviewed the literature and considered real cases the author draws the conclusion that any organization will face challenges of cross-functional approach implementation and it will work only with proper management and only in mature companies.

Keywords: organizational theory, cross-functional team, Matrix organization, management