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Management · Q265

Strategic Management

Graduate and Post Graduate · Management · question 265

Q265

Which one of the following types of organizations would benefit from a matrix structure?

A.
Diverse independent businesses in a conglomerate
B.
Organizations growing through merger and acquisition
C.
Small companies with few plants and limited product or service diversity
D.
Small, sophisticated service companies
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Small, sophisticated service companies one of the following types of organizations would benefit from a matrix structure. A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager.