Matrix Organization Structure: In matrix organizations, employees report to both functional and
product managers. This dual reporting structure allows the organization to efficiently use its
personnel across different projects and functions.
Advantages of Matrix Structure:
Resource Utilization: Personnel from various functions can be utilized effectively across multiple
projects, improving resource allocation and flexibility.
Coordination and Communication: This structure enhances coordination and communication across
different functional areas and projects.
Unity-of-Command: Option A is incorrect because the unity-of-command principle is compromised in
a matrix organization due to dual reporting lines.
Authority and Accountability: Option C is correct to some extent but does not capture the primary
benefit of resource utilization.
Suitability: Option D refers to the best use cases for matrix structures, but option B provides a more
comprehensive understanding of how matrix organizations function.
Reference: Management and Organizational Behavior textbooks.