Question : Case Study 16: Global Innovations
The matrix structure's dual reporting relationships can lead to:
Option 1: Streamlined communication
Option 2: Role ambiguity
Option 3: Enhanced innovation
Option 4: Hierarchical control
Correct Answer: Role ambiguity
Solution : The correct answer is (b) Role ambiguity
The dual reporting relationships in a matrix structure can lead to role ambiguity. With employees reporting to both functional managers and project managers, there can be confusion or uncertainty about role expectations and priorities. This duality may create challenges in understanding who has the final authority and can potentially lead to conflicting instructions or unclear accountability.