When the need to integrate subunits is very high and complex, firms may

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The formal mechanisms used to integrate subunits vary in complexity from simple direct contact and liaison roles, to teams, to a matrix structure. Direct contact between subunit managers is the simplest integrating mechanism. By this mechanism, managers of the various subunits simply contact each other whenever they have a common concern. When the volume of contacts between subunits increases, coordination can be improved by giving a person in each subunit responsibility for coordinating with another subunit on a regular basis. When the need for coordination is greater still, firms tend to use temporary or permanent teams composed of individuals from the subunits that need to achieve coordination. When the need for integration is very high, firms may institute a matrix structure, in which all roles are viewed as integrating roles. The structure is designed to facilitate maximum integration among subunits.

When the Need to Integrate Subunits Is Very High and Complex