Which of the following is True regarding a matrix-management organization?
A) It is a low-cost form of organization.
B) It often creates conflicts regarding authority and responsibility for marketing activities.
C) It hampers the flow of information among marketing personnel.
D) It promotes the matrix concept throughout the company.
E) It is best suited to companies that offer a small range of products to niche markets.

Question

Quizplus · Accepted Answer

Matrix management organizations often create conflicts regarding authority and responsibility for marketing activities because employees report to both a functional manager and a product or project manager, leading to possible confusion and overlapping responsibilities. The other options are not true; matrix management organizations are not necessarily low-cost, they are designed to promote the matrix concept, and they can be suited to companies that offer a wide range of products to diverse markets. There is no indication that a matrix management organization hampers the flow of information among marketing personnel.

Which of the Following Is True Regarding a Matrix-Management Organization