Matrix structures:
A) have many hierarchical levels.
B) are appropriate for companies with many low-skilled workers.
C) group activities vertically by function and horizontally by product or project.
D) are appropriate for a firm pursuing a low-cost strategy.
E) have several product group hierarchies and two forms of horizontal differentiation.

Question

Quizplus · Accepted Answer

Matrix structures group activities vertically by function and horizontally by product or project. This allows for a more flexible and adaptable organizational structure, especially in companies that require cross-functional collaboration and coordination. Having many hierarchical levels or low-skilled workers are not defining characteristics of a matrix structure. Pursuing a low-cost strategy can be achieved through various organizational structures, and E is not a valid description of a matrix structure.

Matrix Structures