The business structure or hierarchy is organised traditionally under separate
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
It may be less flexible and slower to respond to changes.
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.
Helps to create a coherent culture within an organisation as workers will take
their ideas back to their functional areas.
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
A subordinate is directly answerably to his manager and can be held to
account for any work that they have done.
This should lead to firms having a clearer chain of command which should
lead to better two-way communication.
If employees are accountable to two or more, there could be confusion