What type of business structure is characterized by a team-based approach?

The matrix structure is characterized by a team-based approach, which facilitates collaboration and communication across different departments and levels of the organization. In this structure, employees typically report to more than one manager, which allows for the integration of skills and expertise from various functions. This dual reporting improves flexibility and responsiveness to project needs.

A matrix structure supports teamwork by forming project groups that bring together individuals from different departments, encouraging diverse perspectives and collaborative problem-solving. This adaptability makes it particularly effective for organizations that need to respond quickly to changing market conditions or specific project demands.

In contrast, the functional structure focuses on specialized departments, which can lead to siloed operations with less cross-department collaboration. The hierarchical structure emphasizes a clear chain of command, which may limit direct communication and team-based initiatives. The divisional structure organizes the company around products or regions, which can enhance focus but does not inherently promote a team-based culture across the organization in the way that a matrix approach does.