A Proposal on Developing a 360° Agile Organizational Structure by Superimposing Matrix Organizational Structure with Cross-functional Teams

Abstract

With the growing business opportunities and expanding boundaries, the organizational structure of the companies is becoming highly dynamic with several levels flattened out and branching out horizontally, instead of being vertical. With agility required in all fast-evolving organizations, it is essential to check out for the suitability of the modern organizational structures prevalent, being classified by Mintzberg as ‘entrepreneurial or simple structure, machine bureaucracy, professional bureaucracy, divisional form, and adhocracy or innovative’ (Mintzberg, 1980; Lunenburg, 2012).

In this article, we propose a 360° Agile organizational structure which is a hybrid of the matrix organizational structure superimposed with cross-functional teams (CFTs). This article discusses the possibilities of forming smaller teams without compromising the incidence of the essential ‘skills– talents–competencies’, necessary for every single project, thereby superimposing the matrix organizational structure and the CFTs. This article also discusses the advantages and disadvantages of this proposed organizational structure. A possible cross-check with regard to the scalability issues has also been made with the Scaled Agile Framework (SAFe®) agile HR practices.