IIA-CIA-PART3-3P practice question 6 of 35
Organizations use matrix management to accomplish which of the following?
Full set: 488 questionsA matrix management structure is specifically designed to improve coordination and communication across traditional functional departments. By creating dual reporting lines to both a functional manager and a project/product manager, it forces collaboration and information sharing among specialists from different areas. This breaks down departmental silos and enhances horizontal (lateral) communication channels to achieve specific project goals that require integrated, cross-functional expertise. The structure's primary purpose is to balance the need for functional specialization with the need for project-based integration and responsiveness.
A. A matrix structure complicates the chain of command by introducing dual authority, which can create role ambiguity and conflict, rather than improving or simplifying it.
B. This structure often decentralizes decision-making authority to project and functional managers, potentially weakening the direct operational control of corporate headquarters.
C. A divisional structure is better suited for focusing on a single market. A matrix structure is used to manage the complexity of multiple projects, products, or markets simultaneously.
1. Daft, R. L. (2015). Organization Theory and Design (12th ed.). Cengage Learning. In Chapter 3, "Fundamentals of Organization Structure," Daft explains that a key strength of the matrix structure is that it "encourages functional and project skill development" and "provides an opportunity for employees to learn new skills," which is facilitated by increased lateral communication and coordination (pp. 103-106).
2. Galbraith, J. R. (1971). Matrix Organization Designs: How to combine functional and project forms. Business Horizons, 14(1), 29-40. https://doi.org/10.1016/0007-6813(71)90037-1. Galbraith's seminal work describes the matrix as a way to institutionalize lateral communication processes. He states, "The matrix organization is a way of achieving the required lateral coordination..." (p. 37), emphasizing its role in managing information flow across functional boundaries.
3. Knight, K. (1976). Matrix Organization: A Review. Journal of Management Studies, 13(2), 111-130. https://doi.org/10.1111/j.1467-6486.1976.tb00537.x. This review article identifies a primary advantage of the matrix structure as its ability to achieve "improved coordination of interdependent sub-tasks" (p. 117), which is a direct result of enhanced lateral communication among diverse functional specialists working on a common project.
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