Problems with the matrix structure are as follows:
A) two or more managers must agree on decisions, which can lead to slow decision making.
B) special divisions often must be established to serve heterogeneous customer segments.
C) global branding and production coordination are hindered.
D) functional concerns are ignored.
E) upper management is no longer involved in key decisions of the IC.

Question

Quizplus · Accepted Answer

Although it once seemed the matrix organizational form would let firms simultaneously access the advantages of product, regional, and functional forms, you might ask yourself whether its multiple reporting relationship might be a problem. In fact, the disadvantages of the matrix form have kept most worldwide companies from adopting it. One problem with it is that the two managers (or three, if it is a three-dimensional matrix) must agree on a decision. This can lead to less-than-optimal compromises, delayed responses, and power politics in which more attention is paid to the process than to the problem. When the managers cannot agree, the problem goes higher in the organization and takes top management away from its duties.

Problems with the Matrix Structure Are as Follows