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International Journal of Public Sector Management Matrix organizations and cross-functional teams in the public sector: a systematic review Mikko Pakarinen Petri Juhani Virtanen Article information: To cite this document: Mikko Pakarinen Petri Juhani Virtanen , (2017)," Matrix organizations and cross-functional teams in the public sector: a systematic review ", International Journal of Public Sector Management, Vol. 30 Iss 3 pp. - Permanent link to this document: http://dx.doi.org/10.1108/IJPSM-04-2016-0065 Downloaded on: 27 March 2017, At: 05:37 (PT) References: this document contains references to 0 other documents. 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D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) http://dx.doi.org/10.1108/IJPSM-04-2016-0065 Matrix organizations and cross-functional teams in the public sector: a systematic review Introduction The objectives of public organizations are numerous, ambiguous, multidimensional and often difficult to reconcile, resulting from requirements and prerequisites such as equality and efficiency (e.g. Chun and Rainey, 2005; Pandey and Rainey, 2006). Today, this operating framework calls for new understanding to manage public organizations as complex systems (e.g. Stenvall and Virtanen, 2015; Virtanen and Vakkuri, 2015). In response to these pressures, concepts commonly used in the private sector are filtering into the public sector (e.g. Boyne, 2002, Pollitt and Bouckaert, 2004). The research literature of public sector organizations and public policies emphasize the fact that public sector institutions need to deal complex and multifaceted problems, and therefore have enormous need to personalize and reorganize their services and ways of work (e.g. Boland and Fowler, 2000; Colander and Kupers, 2014). There is a plethora of research discussion concerning the “wicked problems” of society and how they affect public sector organizations and institutions as well as the whole society. This comes together with the pressure to enhance the effectiveness and public sector organizations, which consequently leads to tighter budgets and greater scrutiny from governments, media and community groups (e.g. Burke et al., 2013; Dunleavy and Carrera, 2013). As a management practice, the matrix organization structure gained in popularity during the 1970s and 1980s among many private companies and in multiple industries (e.g. Davis and Lawrence, 1977; Galbraith, 2009). The approach was commonly seen as a means of adjusting to an increasingly complex operating environment (e.g. Davis and Lawrence, 1977; Galbraith and Kates, 2007). As part of their response to these demands to improve coordination and integration, span organizational boundaries and cut product development cycle time, organizations also began to set up cross-functional teams (CFTs) (e.g. Denison et al., 1996; McComb et al., 2008; Piercy et al., 2013), which can be seen as a part of matrix management. However, deployment of the matrix organization and CFTs in public sector organizations has not been extensively studied. Most studies concentrate on private companies, and research interest in the public sector seems lesser (Piercy et al., 2013). The present systematic review bridges this gap in the literature, following Ford and Randolph’s (1992) review of cross-functional organizational forms. The article addresses the following empirical questions: 1) In what context the matrix structure or CFTs are found and implemented in public sector organizations? 2) What is the motivation for deployment and what is the proven value of implementing matrix structure or CFTs in public sector organizations? 3) How are matrix structures or CFTs able to respond to the problem of coordination, and to handle “wicked problems” of public organizations? 4) How do CFT´s incorporate with the idea of New Public Governance (NPG) in particular? The article is organized as follows. Definition of key concepts is followed by a detailed account of the methods used. Then we present the results from our empirical study, and finally conclude the paper by discussing how public sector management practices have developed during the last 25 years also with relation to the ideas public management ideologies, with particular reference to matrix structures and CFTs. Key Concepts Matrix organization, which integrates a functional structure into a horizontal project organization, has been widely reflected in the existing research literature (e.g. Davis and Lawrence, 1977; Galbraith, 2009). Its purpose is to combine the efficiency of functional design with the flexibility and responsiveness of a multi-divisional organization (e.g. Hatch, 2012). According to Burns and Wholey (1993), implementation D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) of a matrix structure constitutes a shift from vertical-functional authority towards a hybrid organization. They described matrix structures as “team-oriented arrangements that promote coordinated, multidisciplinary activity across functional areas, broad participation in decisions, and the sharing of knowledge”. There are a variety of forms of matrix management and matrix structures. Matrix team working can incorporate a number of dimensions, including (Hall, 2013): - Cross-functional matrix teams. Team members come from different organizational functions and are led by a particular “activity leader” who they may not have a formal reporting line to. - Functional matrix teams. Individuals from the same function need to cooperate across an internal matrix such as HR specialists, all of whom are within the HR function, but normally working in different business units, product groups or regions. - Global matrix teams. Individuals from different functions, countries, time zones and cultures come together to solve a common problem. - Extended matrix teams. Individuals from different organizations need come together to solve common problems. Cross-functional teams (CFTs) are also known as multidisciplinary teams, interfunctional teams or integrated product teams (Alexander et al., 2005; Athanasaw, 2003; Parker, 1994). CFTs can take many forms, but they are usually structured as groups of people from different functional areas,designed as an overlay to the existing functional organization (Galbraith, 1994). Both matrix organization and a project organization are cross-functional structures that may include CFTs, but while project structures form around specific finite tasks, matrix structures tend to form around ongoing tasks (Ford and Randolph, 1992). CFTs can exist within a matrix structure as cross-functional matrix teams, with part-time commitment and temporary assignment of members to teams, or within a more autonomous team structure in which team assignments are full-time and long-term (Denison et al., 1996). Matrix organization does not require CFTs as such, but matrix and CFTs are overlapping as concepts. Similarities between matrix organizations and CFTs are clear as CFTs can help to build understanding, problem solving capabilities, co-ordination and communication, ultimately improving quality and productivity (Proehl, 1996). Additional benefits of CFTs include increasing skills of the workforce, the development of a common language and shared mental models, an enhanced understanding of how the organization functions as a whole and how individual employees fit within the organization; this in turn increases an employee’s feeling of worth and ability to work interdependently (Piercy et al., 2013). Integrated Project Teams (IPTs) are sometimes used in conjunction with CFTs. While closely related to matrix structures, these place greater emphasis on the team aspect of participation by functional representatives (Briggs and Kleiner, 2002). D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) Methods The systematic literature review was conducted using Fink’s (2013) seven-step model: 1) selecting research questions, 2) selecting article databases and sources, 3) choosing search terms, 4) applying practical screening criteria, 5) applying methodological screening criteria, 6) doing the review and 7) synthesizing the results. The review was compiled from the following electronic databases: EBSCOhost (Academic Search Premier), Emerald, JSTOR, Sage Journals Online (Premier), and Wiley Online Library. The search covered the period from January 1990 to December 2015 and was confined to academic articles published in the English language. Search terms were applied to abstracts and titles, and only journal articles were considered. The Boolean search term combinations used were (“matrix organization” OR “matrix structure” OR “cross-functional teams”) AND “Public sector” AND (“management” OR “leadership”), as well as (“Matrix organizational structure” OR “Cross-functional teams”) AND “Public Administration Management” to improve overall quality. The search produced 1225 articles; this was reduced to 246 articles after removing duplicates using RefWorks. Selected articles were pinpointed by search terms such as “matrix”, “cross-functional teams” and “public sector”, and abstracts were read and articles assessed on the basis of inclusion and exclusion criteria (see Figure 1). This resulted in the selection of 61 articles to be read in their entirety, of which 20 were accepted for analysis. References in the selected articles were also reviewed manually to identify other relevant publications. The manual search yielded 18 further articles, of which 7 were accepted. Thus, the data comprised of 27 (20+7) articles. The main inclusion criteria were empirical evidence relating to implementation of matrix organization structure or CFTs and relevance to public sector organizations. Articles on matrix organization or CFTs were included to examine definitions and to emphasize the importance of matrix structures or CFTs in the organization and management of public sector organizations. Articles were excluded from further analysis if there was no clear description of the public sector organization, or if matrix organization or CFTs were merely mentioned or recommended as a possible solution to identified problems. This left 27 articles for inclusion in the review. The theoretical literature on matrix organizations and CFTs and on public sector organizations was used to support analysis and classification of the selected articles. To begin, the selected articles were categorized by area of application—that is, the purposes for which public organizations used matrix structures or CFTs. Second, articles were categorized by type of public organization. Third, articles were searched by asking about the motivation for deployment. Fourth, the perceived utility of deployment was examined. All this information was combined in table (Table 1). The last column lists the key references from the articles. Finally, the findings were linked to the problem of coordination and how to handle “wicked problems”. The process is summarized in Figure 1. D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) Figure 1. Literature search process. Records identified through the database search (n = 1225) Database search: Included Excluded Records after duplicates were removed (n = 246) Abstracts read and search terms searched manually Articles assessed for eligibility (n = 61) Whole text read Articles accepted (n = 20) Records excluded with reasons (n = 979): Duplicates Records excluded with reasons (n = 186): No scientific journal articles (e.g. book only) No search terms (matrix, cross-functional teams) found in article No organization-related concept of matrix No whole article available Records excluded with reasons (n = 41): No matrix as organization structure or CFTs as part of public organization management No public sector organization Theoretical reconstruction based on published research (no empirical results) Manual search: Included Excluded Whole articles read and references checked (n = 61) Articles found (n = 18) Whole text read Articles accepted (n = 7) Records excluded with reasons (n = 11): No matrix as organization structure or CFTs as part of public organization management No public sector organization Theoretical reconstruction based on published research (no empirical results) D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) Results General description of the included articles The 27 selected articles spanned three decades; six were published in the 1990s, 16 between 2000 and 2009 and five between 2010 and 2015. Articles were divided in four categories by the application area of matrix or CFTs (Table 1). Findings can also be seen in relationship towards internal and external world of organization, and the organizational context they are applied in (Figure 2). Figure 2. The context of matrix and CFTs application areas in public sector Matrix structures and CFTs in creation of new organizations or organization reform Seven articles were categorized as creation of new organization or organization reform (Table 1). The context of these articles varied. The motivation for change are familiar to challenges of public sector organizations. The operating environment changes, it creates a need to redefine organizational boundaries, to rethink service delivery, the ways organizations function, and the degree of efficiency of the organization. Therefore resource and process control, and effectiveness are underlined when creating a completely new organization or reforming it (e.g. Iverson and Pullman, 2000; Skærbæk and Melander, 2004; Werth and Fleming, 2008). As well as resource control and effectiveness, the diversity of cultural groupings and tasks and their variationshave also been noted as motivating factors (McMahon, 2004; Lawrie et al., 2004) to implement matrix structures. Burns and Wholey (1993) suggested that the transition to a hybrid organization improves responsiveness to task diversity, and also discussed sociometric location and dissemination of information as motivations in organizations that adopt a matrix structure. As an outcome, Werth and Fleming (2008) described reduced overall bureaucracy, staff savings and funds freed for reinvestment in direct services. They went on to list numerous examples of service integration and increased innovation and creativity, and how support services became more service- oriented. However, the benefits found in the study of Werth and Fleming (2008) do not seem to transfer when it comes to creation of new organization structure. There were only few observed benefits of matrix --- = Organization boundary D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) structures, and a number of familiar problems were identified (e.g. Brooks and Kakabadse, 2014; McMahon, 2004). In the context of wicked problems of public sector, previous studies have focused their attention on the main factors and determinants that underlie the impetus for change in the public sector. These are increasingly unstable operating environment, the need to redefine organizational boundaries, shortage of public resources which is leading to rethinking of service delivery, the ways organizations function, and the degree of efficiency of the whole system, and growing pressure from citizens regarding the quality of services provided (e.g. Osborne and Brown, 2005). Generally, creating a new matrix organization or reforming an organization structure are no answer for wicked problems public sector organizations face. In fact, implementing matrix structures seem to create problems of its own in many cases. Reforming organization to more matrix-like creates a need to change internal functions and coordinate organization management. Matrix structures and CFTs in HRM and performance management Eleven matrix articles were categorized as HRM and performance management (Table 1). The context of the studies varied considerably. Performance management is emphasized from different perspectives of resource use, and HRM is designed to maximize employee performance. Financial performance, cost savings, improved internal and external project coordination, control and accountability and more effective project management are cited as motivation for deployment or desired outcomes (Kuprenas, 2003; Opstrup and Villadsen, 2015; Reyes, 1998; Rowlinson, 2001). As an outcome, CFT´s are linked to better performance and performance management in public sector organizations (Athanasaw, 2003; Bitter et al., 2013; Opstrup and Villadsen, 2015). CFTs seem to offer one answer to wicked problem of coordination of cross-boundary tasks in public sector organizations, as Athanasaw (2003) highlighted competence management, effective team management and team work management, noting that CFT provides managers and employees, respectively, with guidelines for team formation and teamwork (see also Briggs and Kleiner, 2002; Davison and Hyland, 2002). The role of HRM policies and practices is increasingly important in improving service quality, efficiency and organizational effectiveness in the public sector (Burke et al., 2013). The connection of performance management and HRM to service development is clear, as managers seek to maintain or improve the quality of service delivery (Arnaboldi et al., 2015). Performance measurement has become pivotal not only in reform, but also in daily public management and policymaking (Van Dooren et al., 2015). However, the effectiveness rests heavily on the knowledge, skill, and drive of organization´s employees, as the key resource in many public services is their human capital. By organizing work in the form of matrix per se can´t offer a solution to all above mentioned wicked problems, but CFTs can help public sector organizations to improve internal coordination and effective use of human capital, which is the core of HRM and performance management. Matrix structures and CFTs in public service development and public procurement Eight articles were categorized as service development and public procurement (Table 1). Context of the studies varies, but motivation factors are familiar to the challenges of public sector service development and management. For example, in the study of Alexander et al.’s (2005) the motivation to use CFTs was more to improve the quality of the health service by reorganizing the way of working, but in the study of Rowe et al. (2004) the motivation to implement internal matrix is closer to change the whole culture of the organization when it comes to entrepreneurial approach of service development within public healthcare organization. The usefulness of CFTs seems clear in public service development. In general, CFTs improve internal collaboration and communication, supporting the achievement of declared objectives, and eliminating internal competition (Alexander et al., 2005; Bennett and Savani, 2004; Navaratnam and Harris, 1994). These findings support the results of Proehl (1996) as CFTs can help to build understanding, problem solving capabilities, co-ordination and communication, ultimately improving quality and productivity. D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) Rowe et al. (2004) also noted that an internal matrix structure helped to develop new interdisciplinary work practices viewed by other organizations as examples of best practice. To succeed in it requires collaboration, coordination and crossing mental and physical barriers. Public services today are produced by a multitude of institutions, and they exist in the spaces between the citizens and the system (Figure 2). One way to respond to the wicked problems of changing environment in service development, but which also requires cross-boundary coordination, is public procurement. McKevitt et al. (2014) explored the factors that influence buyer decision-making in public procurement to better understand the processes and conditions that support different supply arrangements and maximize SME participation. Motivation for deployment of the CFT´s are seen in improvement and understanding processes and conditions that support different supply arrangements in public procurement, reducing costs and providing better services to customers in different levels of public administration (McKevitt et al., 2014). As an outcome, CFT´s are also seen as possible way to create best possible purchasing unit in public sector organization (Murray, 2002). Economic constraints and advanced technology have an effect how the public services are led, managed, organized, and how the organizational cultures are renewed within the domain of public services (Argyris, 2010). The idea of public services must be rethought, and perhaps public services should be thought as arenas for interaction, cooperation, and co-creation, orchestrated by networks of organizations, as Virtanen and Stenvall (2014) suggest. Value of internal matrix in service development rests in structure´s ability to help the service organization to open up and operate in and between organizations. CFTs seem to be one solution for that in service development. Matrix structures and CFTs in network organization or inter-organizational collaboration Cooperative, inter-organizational networks have become a common solution for delivery of public services. Goldsmith and Eggers (2005) emphasize that public sector organizations can’t solve complex horizontal problems with vertical solutions, andthe role of government is being transformed from direct service provider to generator of public value, and we need to figure out how to better manage a public sector that does less itself and more through third parties. The idea is that inter-organizational collaboration and perhaps network organizations could offer solutions for those wicked problems. Only one article was categorized as network organization or inter-organizational collaboration. Palmer (1996) described a case study of a sample of English local authorities seeking to develop inward tourism, based on a network organization involving public-private partnership. It is a clear example of a public organization that responds to the changing role from direct service provider to generator of public value, and how it requires inter-organizational collaboration. The study of Palmer (1996) used emerging frameworks of network organizations to show how public sector organizations can form horizontal relationships to exchange core competences with private sector organizations. However, it is possible that a local government organization’s decision to collaborate with a tourism development company is a consequence of the development of increasingly matrix-type structures within the organization (Palmer, 1996). Therefore the role of a matrix structure, which forces to act and work in a different way, can be seen as a way to move the organization mentally towards more inter-organizational collaboration. [INSERT TABLE 1 HERE] Table 1. Articles included in the review D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) Discussion Since 1990s, theoretical discussions on New Public Management (NPM) have focused on issues like administrative decentralisation and delegation of authority, managerial autonomy, and flexibility, including performance measurement. This has stressed the role of output-based (or effectiveness) accountability forms prioritising effective and efficient service delivery above input and process-based models that focus on means and procedures (e.g. Pollitt and Bouckaert, 2004). However, the shift from NPM towards the NPG can be conceived as a shift from a closed system to an open system, by deploying the conceptual tool-box offered by the Modern Systems Theory (e.g. Virtanen and Stenvall, 2014). Conceiving public sector organization as an open system helps to understand the role of matrix organising and the CFT´s. Major part of the articles analysed in this paper focus on intra-organizational processes, and they can be categorized to represent the ideas of closed system thinking even though that they reach beyond inter-organizational boundaries within a single organization. However, public services today are provided as a process collaboratively produced by several groups of professionals, organizations, and service users. Articles that include inter-organizational relations and co-production as well as co- production in the delivery of public services can be seen to represent the open system logic (e.g. Bovaird, 2007). There are also some examples of those (e.g. McKevitt et al., 2014; Palmer, 1996). The answer to questions how to coordinate public organizations as a system, and handle wicked problems, is more likely to be found in the latter category. Surprisingly, accountability function arises only in few cases of this study (Goddard, 1992; Kuprenas, 2003). Accountability can cause many organizational and managerial challenges in the matrix structure, and it is worth assessing how accountability could be organized in terms of matrix key roles and the effectiveness of public sector organization design or service development (Tevameri and Virtanen, 2013). Accountability should be made visible internally and externally in matrix structures in order to avoid conflicts, and to achieve objectives set, when combining vertical and horizontal organization, and it requires trust and social capital between actors. The notion of accountability is of particular importance when we think public organizations from the domain of NPG, which stresses the accountability function of publicly financed service-ecosystems and the leadership of networks (e.g. Virtanen et al., 2016). However, the appropriateness of the matrix structure in public sector organizations remains debated, with few definitive successes in terms of objectives or desired outcomes. The contextual background of public sector has affected the way public sector organizations have adopted, implemented or otherwise used matrix structures or CFTs. The motivation for deploying a matrix structure is very much same for both public sector organizations and private companies (e.g. Hatch, 2012). As the reviewed articles indicate, efficiency and improved performance is the most common desired outcome. The use of matrix structures in organizational networks is surprisingly limited. Following Brooks and Kakabadse (2014), it seems safe to conclude that public organizations in particular should exercise caution in introducing matrix management, as the scale of change required (see Galbraith, 2009) may be too much if external and internal environments remain the same. CFTs seem to produce better results, improving internal collaboration and communication and so helping to reach objectives set (Alexander et al., 2005; Bennett and Savani, 2004). CFTs are also linked to better performance in public sector organizations (Athanasaw, 2003; Benson and Dresdow, 1998; Bitter et al., 2013; Opstrup and Villadsen, 2015). Internal functions such as HRM and performance management can benefit from CFTs, and there are examples of service development where cross-boundary tasks can be solved by using CFTs (McKevitt et al., 2014; Palmer, 1996). Thus, CFTs represent less of a threat to basic functional organization, and the scale of change in structure and ways of working is also smaller. Additionally, there is a body of evidence in our research, which suggest that achieving structural and cultural change may be harder in public than private sector, as bureaucracy label inherent to many public sectors mitigate against any moves towards flatter, looser structures to enhance predictability, fairness, continuity, innovation, and organizational change (McMahon, 2004; Rowlinson, 2001). Although our data is not fully exhaustive, the data offers a useful cross-section of empirical research on public sector use of matrix management or CFTs for various purposes. Study consciously excludes some D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) parallel arrangements, such as joint planning groups or joint entities such as advisory boards, in order to narrow research and keeping focus on matrix management and overlapping matrix structures such as CFTs. One limitation of this study is that it is confined to English language publications. The study also excluded books, which may include findings that impact on the big picture. However, Figure 1 shows consistency as part of the reliability of the study. We are aware the possible “measurement error” of the study, as it may be that used electronic databases and search terms have left some relevant articles outside of the literature search. The reliability of the selected articles is also verified by criteria of academic journals the articles are published in. The analyzed articles form a valid selection of research concerning matrix management in public sector. By looking the selected articles through the lenses of realistic evaluation (see Pawson and Tilley, 1997), it must be noted, that the context and mechanisms of implementation of matrix structures as a system in each selected article is unique. In many cases time and place, people involved, economic, social,political, and cultural factors of organization, and the mechanisms used in implementation process of matrix structures, create a unique context which can´t be replicated as it was under each study. Hence, the outcomes of each empirical case depend on the context and mechanisms, and the transferability of the results can be questioned, but the impact of implementing matrix structures in public sector organizations can and is evaluated as a system. D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) Conclusion Based on our empirical data, the applications of matrix structure and cross-functional teams (CFTs) deployed in the public sector can be categorized as follows: 1) creation of a new organization or organization reform; 2) human resource management (HRM) and performance management; 3) service development and public procurement and 4) network organization or inter-organizational collaboration. It seems evident, that public sector organizations have adopted, implemented or used matrix or CFTs. These include federal governmental organizations, state organizations, local authorities, municipalities and hospitals mainly in the US, UK and Australia, as well as in countries such as Denmark, the Netherlands and Ireland. The connecting thread between these disparate organizations is in areas of application and motivation for deployment. They are all facing challenges characterized by complexity, ambiguities and uncertainty. It is interesting that the motivation for matrix deployment in the public and private sectors appears to be rather similar (see Hatch, 2012), such as improved management and better performance of services and control systems (Goddard, 1992; Iverson and Pullman, 2000; Werth and Fleming, 2008). Cost savings, improved internal and external project coordination, control and accountability, and more effective project management have also been mentioned as key drivers of deployment (Athanasaw, 2003; Kuprenas, 2003; McKevitt et al., 2014; Reyes, 1998). For various reasons, the acknowledged benefits of the matrix approach in the public sector remains to be debated (e.g. Brooks and Kakabadse, 2014; Goddard, 1992; Priestly, 2009; Rowlinson, 2001; Skærbæk and Melander, 2004). Among the success stories (Iverson and Pullman, 2000; Kuprenas, 2003; Rowe et al., 2004), Werth and Fleming (2008) reported benefits such as reduced overall bureaucracy, staff savings and funds freed for reinvestment in direct services. However, the benefits of CFTs seem clearer in HRM, performance management and service development, including improved internal collaboration, communication, better performance and achievement of objectives (Alexander et al., 2005; Athanasaw, 2003; Bennett and Savani, 2004; Benson and Dresdow, 1998; Bitter et al., 2013; Opstrup and Villadsen, 2015), but the utility of CFT´s is not so visible in complete organizational reforms. According to our findings, public sector organizations face a wide range of social, political and economic problems that are ambiguous and “wicked”. The matrix structures are one attempt to handle these, but so far not very successful one. However, especially CFTs can be help in the problem of coordination and collaboration in internal processes such as HRM or service development, and sometimes between organization boundaries. Changing operating environment of the public sector in the domain of NPG has a direct effect on the ways public organizations organize their internal processes such as HRM, and manage their performance, or develop their services. Today, service development requires increasingly inter-organizational collaboration and coordination, as adaptive functional integration, fluent inter-organizational information flow, common modus operandi between organizations, and sophisticated knowledge management. Functional integration in and between public organizations may even be harder than to create structural integration by implementing matrix structures. Hence, it seems that matrix structures have a limited power to solve wide-ranging wicked problems of public sector organizations. As far as practical implications from this study are concerned, CFT´s can be conceived as an organizational solution to address the idea of public organization in the framework of open systems, the possibility to manage so called wicked problems, the emergence of new public sector leadership paradigms after the NPM and NPG, as well as the multiple disorder of accountabilities. This systematic review sets out number of possibilities for future research. These include the more detailed empirical cultivation of the role of CFT´s in the field of public services in-between the “single organizations” and the more nuanced understanding of multiple accountabilities brought about with the deployment of the CFTs. 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D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) http://www.emeraldinsight.com/action/showLinks?crossref=10.1111%2Ffaam.12027 http://www.emeraldinsight.com/action/showLinks?system=10.1108%2FIJLPS-03-2014-0002 http://www.emeraldinsight.com/action/showLinks?crossref=10.1515%2Fnispa-2015-0010&isi=000369148200004 http://www.emeraldinsight.com/action/showLinks?crossref=10.1080%2F01446190110066137 http://www.emeraldinsight.com/action/showLinks?system=10.1108%2F09513570410525193 http://www.emeraldinsight.com/action/showLinks?system=10.1108%2F09513570410525193 I m p le m en te d st ru ct u re C o n te x t M o ti v a ti o n f o r d ep lo y m e n t o r se a r ch ed b en ef it s O u tc o m e – I d en ti fi ed u se fu ln es s o r b en ef it s fo u n d R ef er en c e s A p p li ca ti o n a re a P u b li c se ct o r o rg a n iz a ti o n t y p e m at ri x C re at io n o f n ew o rg an iz at io n / o rg an iz at io n re fo rm H o sp it al s (U S a n d A u st ra li a) T ra n si ti o n t o w ar d s h y b ri d o rg an iz at io n , w h ic h c an r es p o n d b et te r to t as k d iv er si ty , so ci o m et ri c lo ca ti o n ( le ad er s an d f o ll o w - er s) , an d d is se m in at io n o f in fo rm at io n U n cl ea r: p ri o r to a d o p ti o n , o rg an iz at io n s tu rn to t h ei r en v ir o n m en t fo r in fo rm at io n o r n o rm a- ti v e su p p o rt ; n o n -t ec h n ic al m o ti v es , su ch a s p er so n al e x p er ie n ce s, a re l ar g el y r es p o n si b le fo r ab an d o n m en t o f th e m at ri x s tr u ct u re B u rn s an d W h o le y ( 1 9 9 3 ) m at ri x M o re c o st e ff ec ti v e an d f le x ib le i n u ti li za - ti o n o f h u m an r es o u rc es b y h o sp it al m er g er , w h er e o rg an iz at io n c h an g ed t o a m at ri x st ru ct u re o f p ro g ra m s C o st s av in g s th ro u g h w o rk fo rc e re st ru ct u ri n g , es p ec ia ll y i n t h e ar ea o f su p p o rt s er v ices Iv er so n a n d P u ll m an ( 2 0 0 0 ) m at ri x S ta te a g en cy ( E n v i- ro n m en t A g en cy fo r E n g la n d a n d W al es ) C o m b in at io n o f d iv er se c u lt u ra l g ro u p in g s w it h in o n e n ew o rg an iz at io n ( am al g am at io n o f ab o u t 8 6 r eg u la to ry b o d ie s) U n cl ea r: c re at io n o f n ew o rg an iz at io n l ed t o a m is m at ch b et w ee n i n st it u ti o n al f o rm a n d c u l- tu ra l id en ti ti es , re su lt in g i n f ai lu re t o c re at e cl ea r o rg an iz at io n al g o al s, w it h n o d ev el o p - m en t o f o rg an iz at io n al c u lt u re M cM ah o n (2 0 0 4 ) m at ri x R es p o n se t o d iv er si ty o f d u ti es a n d v ar ia - ti o n o f th es e d u ti es l o ca ll y , w h en 8 6 s ep a- ra te g o v er n m en ta l o rg an iz at io n s w er e am al g am at ed U n cl ea r: c o rp o ra te p er fo rm an ce m an ag em en t sy st em i n tr o d u ce d t o e n h an ce e ff ec ti v en es s L aw ri e e t a l. (2 0 0 4 ) m at ri x G o v er n m en t- o w n ed li m it ed c o m p an y (D en m ar k ) N ee d f o r ti g h t co n tr o l o f re so u rc es i n t ra n si - ti o n o f g o v er n m en t- o w n ed l im it ed c o m p an y u n d er p ri v at iz at io n U n cl ea r: m at ri x o rg an iz at io n s tr o n g ly c ri ti - ci se d b y m id d le m an ag er s S k æ rb æ k a n d M el an d er ( 2 0 0 4 ) m at ri x R eg io n al s er v ic e d el iv er y s y st em o f H ea lt h a n d H u m an S er v ic es A g en cy (U S ) T o c re at e an e ff ic ie n t, e ff ec ti v e an d c li en t- fo cu se d o rg an iz at io n R ed u ce d o v er al l b u re au cr ac y , st af f sa v in g s, fr ee d f u n d s to r ei n v es t in d ir ec t se rv ic es ; n u - m er o u s se rv ic e in te g ra ti o n e x am p le s an d i n - cr ea se d i n n o v at io n a n d c re at iv it y ; su p p o rt s er - v ic es b ec am e m o re s er v ic e- o ri en te d W er th a n d F le m in g ( 2 0 0 8 ) m at ri x L o ca l au th o ri ty ch il d re n ´s s er v ic es (U K ) M at ri x m an ag em en t as a r es p o n se t o c o u n - ci l re st ru ct u ri n g a n d b u d g et d is ag g re g at io n in to f o u r g eo g ra p h ic al a re as U n cl ea r: m at ri x m an ag em en t sh o u ld b e in tr o - d u ce d a n d u se d w it h c au ti o n ; lo ca l au th o ri ty re ta in ed m at ri x m an ag em en t fo r ju st t w o y ea rs B ro o k s an d K ak ab ad se (2 0 1 4 ) m at ri x H R M a n d p er - fo rm an ce m an - ag em en t D is tr ic t H ea lt h A u th o ri ty ( co m m u - n it y -b as ed p sy ch o - g er ia tr ic s er v ic e) M an ag em en t o f co m p le x o rg an iz at io n . P er - fo rm an ce o f se rv ic es a n d c o n tr o l sy st em s U n cl ea r: o rg an iz at io n s tr u ct u re r es u lt ed i n m at ri x s tr u ct u re b u t re sp o n si b il it ie s w er e co m - p le x a n d u n cl ea r (a cc o u n ta b il it y ). G o d d ar d ( 1 9 9 2 ) m at ri x H i- te ch p u b li c se c- to r o rg an iz at io n (U S ) In te rn al a n d e x te rn al p ro je ct c o o rd in at io n U n cl ea r: p ro je ct m an ag em en t cr ea te d m at ri x st ru ct u re i n w h ic h o rg an iz at io n al f ra m ew o rk s fo r p ro je ct o rg an iz at io n l ar g el y g u id ed t as k R ey es ( 1 9 9 8 ) D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) fo rc e d es ig n a n d o p er at io n m at ri x D ep ar tm en t o f la rg e ci ty o rg an iz a- ti o n ( U S ) C o st s av in g s, i m p ro v ed p ro je ct c o n tr o l an d ac co u n ta b il it y , m o re e ff ec ti v e m an ag em en t o f p ro je ct s M o v e to w ar d s p ro je ct m an ag em en t st y le o f o rg an iz at io n i m p ro v ed p er fo rm an ce o f th e o rg an iz at io n w it h r es p ec t to p ro je ct d el iv er y K u p re n as ( 2 0 0 0 ) m at ri x G o v er n m en t d e- p ar tm en t (H o n g K o n g ) E ff ec ti v en es s: n ee d f o r p ro je ct m an ag em en t sy st em a n d n ee d t o c o p e w it h i n cr ea se d p er fo rm an ce d em an d s U n cl ea r: m aj o r p ro b le m s in i m p le m en ta ti o n p ro ce ss , es p ec ia ll y i n t h e m is m at ch b et w ee n o rg an iz at io n al c u lt u re a s p er ce iv ed b y w o rk er s an d n ew m at ri x s tr u ct u re R o w li n so n (2 0 0 1 ) C F T N et w o rk ( p at ie n t ca re t ea m s) M an ag em en t o f in n o v at io n b y C F T s in h ea lt h c ar e. T o b re ak t h ro u g h a n d d im in is h p ro fe ss io n al ly -b as ed p ar ad ig m c o n fl ic ts a n d o rg an iz at io n al p o li ti cs . P al li at iv e ca re p ro fe ss io n al s h av e ad o p te d s el f- re g u la ti n g w o rk t ea m s in a h ig h ly u n ce rt ai n en v ir o n m en t as t h e m o st s u it ab le h u m an r e- so u rc e st ru ct u re a n d p ra ct ic e. D av is o n a n d H y la n d ( 2 0 0 2 ) C F T ( IP T ) F ed er al g o v er n m en t (U S ) A d o p ti o n o f in te g ra te d p ro d u ct t ea m s (I P T s) i n m an ag in g m aj o r sy st em a cq u is i- ti o n s S u cc es sf u l ap p li ca ti o n o f p ri v at e se ct o r m an - ag em en t th eo ry t o f ed er al g o v er n m en t B ri g g s an d K le in er ( 2 0 0 2 ) C F T F ed er al , st at e an d lo ca l g o v er n m en ts (U S ) C ro ss -f u n ct io n al s o u rc in g t ea m s ar e u se d t o b re ak d o w n b ar ri er s in a n o rg an iz at io n w h er e d iv is io n o f la b o u r an d d iv is io n s o f ta sk a re p re v al en t. C F T ´s a re a ls o u se d t o d ev el o p n ew b u si n es s st ra te g ie s an d t o i m - p ro v e p ro ce ss es , re d u ci n g c o st s an d p ro v id - in g b et te r se rv ic es t o c u st o m er s. C o m p et en ce m an ag em en t; e ff ec ti v e te am m an - ag em en t an d t ea m w o rk m an ag em en t; g u id e- li n es f o r te am f o rm at io n ( m an ag er s) a n d te am w o rk ( em p lo y ee s) A th an as aw (2 0 0 3 ) m at ri x P u b li c li b ra ri es (U S ) C ri ti ci sm o f cu rr en t m at ri x o rg an iz at io n st ru ct u re r el at in g o rg an iz at io n p ay p o li cy li n e U n cl ea r: h y b ri d m at ri x -h ie ra rc h ic al s tr u ct u re re co m m en d ed a s in cr em en ta l ad v an ce t o w ar d s tr ad it io n al h ie ra rc h ic al s tr u ct u re P ries tl y ( 2 0 0 9 ) C F T H o sp it al ( N et h er - la n d s) P er fo rm an ce i m p ro v em en t in o p er at in g ro o m s o f h o sp it al s th ro u g h m u lt id is ci p li - n ar y t ea m w o rk Im p le m en ti n g c ro ss -f u n ct io n al o p er at in g r o o m sc h ed u li n g t ea m s d ir ec tl y i m p ro v es o p er at in g ro o m p er fo rm an ce B it te r e t a l. (2 0 1 3 ) m at ri x M u n ic ip al it ie s (N et h er la n d s) Im p ro v e an d r es p o n d t o i n co m p at ib il it y b et w ee n r ep o rt in g s tr u ct u re a n d o rg an iz a- ti o n al s tr u ct u re U n cl ea r: e x p er im en ts w it h n o c le ar r es u lt s v an H en g el e t a l. ( 2 0 1 4 ) C F T M u n ic ip al it ie s (D en m ar k ) H o w g en d er d iv er si ty o f to p m an ag em en t te am s su p p o rt s fi n an ci al p er fo rm an ce G en d er d iv er si ty i n t o p m an ag em en t te am s is as so ci at ed w it h h ig h er f in an ci al p er fo rm an ce , b u t o n ly i n m u n ic ip al it ie s w it h a m an ag em en t st ru ct u re t h at s u p p o rt s C F T w o rk . O p st ru p a n d V il la d se n ( 2 0 1 5 ) C F T S er v ic e d ev el o p m en t an d p u b li c p ro cu re - m en t P u b li c se ct o r se r- v ic e o rg an iz at io n (A u st ra li a) A v o id c o m p et it io n a m o n g d if fe re n t ar ea s o f o rg an iz at io n ; en ab le t o w o rk t o g et h er t o - w ar d s a co m m o n g o al C F T s ad d re ss in g p ro ce ss i ss u es a re s ee n i n - st ru m en ta l in e li m in at in g i n te rn al c o m p et it io n N av ar at n am a n d H ar ri s (1 9 9 4 ) C F T U n iv er si ti es / L ea rn in g o u tc o m es a ss es sm en t o f o rg an iz a- U si n g C F T s an d d ev el o p in g i n te g ra ti v e sy s- B en so n a n d D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T ) H ig h er e d u ca ti o n (U S ) ti o n al l ea rn in g t o p ro v id e k n o w le d g e w o rk - er s b u si n es se s re q u ir e te m ic a ss es sm en t p ro ce ss es t o m o v e b u si n es s co ll eg es t o w ar d s m o re e ff ec ti v e m ea su re m en t o f h o w w el l co ll eg es a n d s tu d en ts c an i n te - g ra te , co m m u n ic at e an d a p p ly k n o w le d g e in co m p le x s y st em s o f w o rk in g l if e D re sd o w ( 1 9 9 8 ) m at ri x / C F T H ig h er e d u ca ti o n r ee n g in ee ri n g b y m ar k et p ri n ci p le s an d m an ag em en t ap p ro ac h es fr o m b u si n es s U n cl ea r: r ee n g in ee ri n g t y p ic al ly c ar ri ed o u t w it h o u t re g ar d t o t h e n u an ce s o f o rg an iz at io n al d es ig n ; n o a tt en ti o n p ai d t o l ik el y r es u lt in g co n fl ic ts G re en ( 2 0 0 3 ) C F T U n iv er sa l p u b li c se ct o r o rg an iz at io n (U K ) T o c re at e b es t p o ss ib le p u rc h as in g u n it C F T s h av e th e n ec es sa ry m ix o f ex p er ti se , as an d w h en r eq u ir ed ; fi v e n ew u n iv er sa l ro le s in p u rc h as in g u n it M u rr ay ( 2 0 0 2 ) C F T U rb an r eg en er at io n u n it s in c it ie s (U K , D en m ar k , U S ) N ew p ro d u ct d ev el o p m en t p ra ct ic es o f u r- b an r eg en er at io n u n it s C o ll ab o ra ti o n a n d i n fo rm at io n s h ar in g v ia C F T s B en n et t an d S av an i (2 0 0 4 ) m at ri x P u b li c se ct o r h ea lt h se rv ic e o rg an iz a- ti o n ( A u st ra li a) E n tr ep re n eu ri al a p p ro ac h t o o rg an iz at io n ch an g e; n ee d t o w o rk s m ar te r an d t o o v er - co m e fu n ct io n al b ar ri er s to e ff ic ie n t p ro v i- si o n o f sc ar ce a ll ie d h ea lt h s er v ic es t o p u r- ch as er s an d c o n su m er s In te rn al m at ri x s tr u ct u re h el p fu l in d ev el o p in g n ew i n te rd is ci p li n ar y w o rk p ra ct ic es R o w e e t a l. (2 0 0 4 ) C F T H o sp it al s (U S ) M en ta l h ea lt h o f p at ie n ts a n d g re at er i m - p ro v em en t in a ct iv it ie s o f d ai ly l iv in g L ev el o f p ar ti ci p at io n b y t h e te am a s a w h o le m ay b e m o re i m p o rt an t fo r p at ie n t o u tc o m es th an C F T s sm o o th f u n ct io n in g A le x an d er e t a l. (2 0 0 5 ) C F T M u lt ip le o rg an iz a- ti o n al c o n te x ts : lo ca l au th o ri ty , co m m er ci al s em i- st at e, p o li ce f o rc e, an d t o u ri st a g en cy (I re la n d ) T o b et te r u n d er st an d p ro ce ss es a n d c o n d i- ti o n s th at s u p p o rt d if fe re n t su p p ly a rr an g e- m en ts a n d m ax im iz e S M E p ar ti ci p at io n C F T s as a n i m p o rt an t el em en t in p u b li c p ro - cu re m en t p ro ce ss es M cK ev it t e t a l. (2 0 1 4 ) m at ri x N et w o rk o rg an iz at io n / in te r- o rg an iz at io n al co ll ab o ra ti o n L o ca l au th o ri ti es (U K ) P u b li c- p ri v at e p ar tn er sh ip i n t o u ri sm m ar - k et in g d ev el o p m en t T o u ri sm d ev el o p m en t co m p an y ( P P P ) ca n b e se en a s an e x te n si o n o f m at ri x -t y p e st ru ct u re w it h in l o ca l au th o ri ty , le ad in g t o d ev el o p m en t o f a “s ea m le ss ” o rg an iz at io n P al m er ( 1 9 9 6 ) D ow nl oa de d by U ni ve rs ity o f N ew ca st le A t 0 5: 37 2 7 M ar ch 2 01 7 (P T )