Question : Statement 1: A matrix organizational structure enhances cross-functional collaboration.
Statement 2: It involves a tall hierarchy with multiple layers of management.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
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.
Statement 1 is true. A matrix organizational structure is designed to facilitate collaboration and communication across different functional areas within an organization. Employees often work in cross-functional teams, promoting collaboration and the integration of diverse perspectives.
Statement 2 is false. A matrix organizational structure typically involves a flatter hierarchy compared to traditional hierarchical structures. Employees may have dual reporting relationships (functional and project/product-based), but this doesn't inherently mean multiple layers of management. The focus is on collaboration and efficient communication rather than excessive layers of management.
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