Question : A matrix organizational structure combines which two types of structures?
Option 1: Functional and divisional
Option 2: Divisional and network
Option 3: Network and team-based
Option 4: Team-based and functional
Correct Answer: Functional and divisional
Solution : The correct answer is (a) Functional and divisional structures
A matrix organizational structure blends elements of both functional and divisional structures. It involves creating a dual reporting system where employees have both functional and project or product-based reporting lines.
In a functional structure, employees are grouped based on their functional expertise or specialized areas, such as finance, marketing, or operations. This structure allows for specialization and efficiency within each functional area.
In a divisional structure, employees are grouped based on products, projects, or geographical regions. Each division operates as a separate entity with its own set of functions, such as sales, marketing, and production. This structure allows for a focus on specific products, markets, or geographic areas.
In a matrix structure, employees belong to both a functional department and a project or product team. This structure enables the organization to leverage functional expertise while maintaining a focus on specific projects, products, or markets. Employees report to both their functional managers and project or product managers, creating a dual reporting relationship.
