Which of the following statements about matrix organizations is false?

Question breakdown

Tests

Evaluate advantages and disadvantages of matrix structures

Difficulty

Easy

Key idea: Matrix organizations gain flexibility at the cost of dual reporting, conflict and higher coordination and communication overhead.

How to reach the answer

1. Note that the question asks for the false statement.
2. Dual command can cause conflict between functional and product managers and stress for staff, so A and B are true.
3. Flexibility is the main benefit of a matrix, so C is true.
4. Matrix structures increase complexity and administrative cost, so D is the false statement.

Each option

• AIncorrect. This is true: overlapping authority commonly creates conflict between functional and product managers.
• BIncorrect. This is true: reporting to two bosses increases role ambiguity and stress.
• CIncorrect. This is true: flexibility in deploying resources across projects is a core advantage.
• DCorrect. This is false: matrix structures add management layers and coordination needs, which raise costs and complicate communication.

Common trap: Because matrices are praised for efficient resource sharing, candidates may assume they also cut costs and simplify communication.

In practice: Auditors assessing project-based organizations look for unclear accountability and conflicting priorities that arise from dual reporting lines.

Remember: Matrix structures offer flexibility, but they add cost, conflict and communication complexity.

Reviewed by Alexandra Stone.