Question

Which of the following is NOT an advantage of a matrix structure?

a. It flattens hierarchy and decreases layers of management, thereby decreasing bureaucratic costs and responding time.

b. It facilitates the sharing of plant and equipment, specialized knowledge, and other key resources.

c. It is flexible in form due to the structure that combines two or more organizational forms, with multiple reporting relationships.

d. It allows lower costs by enabling the realization of economies of scope.

e. It may allow for better oversight since supervision is provided from more than one perspective.

Answer 1

Option e is NOT an advantage of a matrix structure; it reflects the complexity of reporting relationships rather than an enhancement in oversight.

Step-by-step explanation:

The correct answer to the question regarding the disadvantages of a matrix structure in an organization is option e: It may allow for better oversight since supervision is provided from more than one perspective. This statement is not an advantage but a complexity that can potentially lead to conflicts due to dual reporting relationships inherent in matrix structures. The matrix structure is designed to utilize resources and expertise efficiently, promote flexibility, and support dynamic team collaboration.

Matrix structures can indeed flatten hierarchies and reduce bureaucratic costs, as seen in letter a, making organizations more agile and responsive. Sharing resources and specialization, as mentioned in b, helps to maximize efficiency and innovation within an organization. The flexibility of form described in c is another strength, allowing the organization to adapt swiftly to changing conditions or the demands of various projects. Finally, economies of scope in d are achieved by leveraging cross-functional resources to provide a broader range of services or products at lower costs.

In contrast, a matrix structure's complexity can lead to problems with accountability and efficiency due to the potential confusion over reporting and authority, not necessarily better oversight as incorrectly suggested by e.