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    Question

    Read the following passage and answer the next 3 question (Q20-Q22) An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company. Traditional organizational structures come in four general types – functional, divisional, matrix and flat – but with the rise of the digital marketplace, decentralized, team-based org structures are disrupting old business models. Each organizational structure comes with different advantages and disadvantages and may only work for companies or organizations in certain situations or at certain points in their life cycles. “Poor organizational design and structure results in a bewildering morass of contradictions: confusion within roles, a lack of coordination among functions, failure to share ideas, and slow decision making bring managers unnecessary complexity, stress and conflict,” Ultimately, it’s important to get a group’s organizational structure correct in order for its aims to be successful.

    What kind of organizational structure combines a vertical chain of command with horizontal reporting requirements?

    A Line authority Correct Answer Incorrect Answer
    B Matrix Correct Answer Incorrect Answer
    C Functional Correct Answer Incorrect Answer
    D Quality circle Correct Answer Incorrect Answer
    E Project organizational Correct Answer Incorrect Answer

    Solution

    Matrix Organization is a combination of the projectized and the functional organization structures. It is defined as one in which there is dual or multiple managerial accountability and responsibility. In a matrix there are usually two chains of command, one along functional lines and the other along project, product, or client lines. The organization is divided into different functions, e.g. Purchase, Production, R & D, etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc. The organization is also divided on the basis of projects e.g. Project A, Project B, etc. Each project has a Project Manager e.g. Project A” Manager, Project B Manager, etc. The employee has to work in a command of two authorities (bosses). The authority of the Functional Manager flows downwards while the authority of the Project Manager flows across (side wards). So, the authority flows downwards and across. Therefore, it is called "Matrix Organization". Matrix Organization There are 3 basic Matrix Organization types viz. weak matrix, balanced matrix, strong matrix Weak Matrix Organization ·         Maintains many characteristics of functional organization. ·         Project manager's role is of coordinator or expeditor than that of a manager. Balanced Matrix Organization ·         Recognizes the need of project manager. ·         Project manager does not have full authority over project and project funding. Strong Matrix Organization ·         Maintains many characteristics of projectized organization. ·         Project managers have considerable authority and full time project administrative staff. This type is shown in the figure. Difference between various types of organization structure :

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