Final answer:
A matrix structure is a type of organizational structure that combines functional and divisional structures. It breaks the unity-of-command concept, reduces ambiguity about reporting relationships, and enhances role clarity while sometimes creating power struggles.
Step-by-step explanation:
A matrix structure is a type of organizational structure that combines functional and divisional structures. It involves employees being assigned to both a functional department and a product or project team. Regarding the statements provided:
- A) It breaks the unity-of-command concept. This statement is true. In a matrix structure, employees have multiple supervisors and report to both their functional manager and project manager, which breaks the unity-of-command principle where each employee should have only one direct supervisor.
- B) It cannot achieve economies of scale. This statement is incorrect. A matrix structure can actually help achieve economies of scale as it allows for flexibility and specialization by bringing together different functional expertise for specific projects or products.
- C) It reduces ambiguity about who reports to whom. This statement is true. In a matrix structure, roles and reporting relationships are clearly defined, reducing ambiguity about who reports to whom.
- D) It prevents power struggles. This statement is false. A matrix structure can sometimes create power struggles as employees have multiple supervisors and may experience conflicting demands and priorities.
- E) It enhances role clarity and avoids role conflict. This statement is true. Role clarity is enhanced in a matrix structure as each employee has clear responsibilities and reporting relationships, reducing role conflict.