A primary advantage of the matrix organizational structure is that it simplifies decision making and communication in geographically diverse organizations.

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Quizplus · Accepted Answer

Though it is appealing in theory, the matrix structure does have shortcomings. It is usually difficult to implement: Implementing two layers of organizational structure creates significant organizational complexity and increases administrative costs. Also, reporting structures in a matrix are often not clear. In particular, employees can have trouble reconciling goals presented by their two (or more) supervisors. Adding an additional layer of hierarchy can also slow decision making and increase bureaucratic costs.

A Primary Advantage of the Matrix Organizational Structure Is That