Correct Answer: Statement 1 is true, and Statement 2 is false.

Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is false.

A matrix organizational structure is a hybrid structure that combines two or more other types of organizational structures, such as functional and project-based structures. In a matrix structure, employees may report to two or more managers, one from their functional department and one from the project team on which they are working.

This structure can enhance cross-functional collaboration by bringing together employees from different departments to work on common projects. This can lead to more innovative and creative solutions, as employees from different backgrounds can share their ideas and perspectives.

A matrix organizational structure does not typically involve a tall hierarchy with multiple layers of management. In fact, it can help to streamline decision-making and reduce bureaucracy by giving employees more autonomy and responsibility.

Overall, a matrix organizational structure can be a very effective way to enhance cross-functional collaboration and improve decision-making.