Considering a matrix organizational structure, which of the following statements are true? (Multiple correct answers are possible.) Group of answer choices The structure aims to capture the benefits of an M-form structure The intention is to promote both functional excellence and product focus. This organizational structure is associated with a centralisation. None of the other answers are correct. The intersection lines of authority can cause confusion.
Question
Considering a matrix organizational structure, which of the following statements are true? (Multiple correct answers are possible.)
Group of answer choices
The structure aims to capture the benefits of an M-form structure
The intention is to promote both functional excellence and product focus.
This organizational structure is associated with a centralisation.
None of the other answers are correct.
The intersection lines of authority can cause confusion.
Solution
The correct answers are:
- The structure aims to capture the benefits of an M-form structure
- The intention is to promote both functional excellence and product focus.
- The intersection lines of authority can cause confusion.
Here's why:
A matrix organizational structure is a type of organizational structure that combines the functional and divisional structures. It aims to capture the benefits of an M-form (multidivisional) structure, which is characterized by a separation of business units based on their function or product line.
The intention of a matrix structure is to promote both functional excellence and product focus. This is achieved by having employees report to both a functional manager (for their specific expertise and performance in that function) and a product manager (for the performance of the product line).
However, this dual reporting can cause confusion and conflict, as the intersection lines of authority are not always clear. Employees may receive conflicting instructions from their two managers, and it can be unclear who has the final say in decision-making.
The statement that this organizational structure is associated with centralization is not correct. In fact, a matrix structure is typically associated with decentralization, as decision-making authority is spread out across multiple managers.
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