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Functional management The business structure or hierarchy is organised traditionally under separate departments. Advantages As a result there are clear chain of commands and everyone knowing exactly what their role is. However this only happens if clear job roles are used to support this structure Disadvantages It may be less flexible and slower to respond to changes. Matrix management The business structure is made up of different project teams working on separate tasks, each of which will include people from different departments and at different levels of the hierarchy. Very useful for project-based type of businesses e.g. advertising, as can meet customer needs quickly and can have specialists working together. Advantages Helps to create a coherent culture within an organisation as workers will take their ideas back to their functional areas. Disadvantages Also expensive because there will be re-training costs for the workers and potential resentment in the short run as the culture would change causing insecurity. Accountability A subordinate is directly answerably to his manager and can be held to account for any work that they have done. Advantages This should lead to firms having a clearer chain of command which should lead to better two-way communication. Disadvantages If employees are accountable to two or more, there could be confusion |