Organizations are most likely to adopt matrix designs when:
A) each unit contains sufficient resources to complete its own projects.
B) the market environment is stable.
C) financial and human resources must be stretched to meet challenges and new opportunities.
D) their markets mature and they need economies of scale to compete on the basis of price.

Question

Quizplus · Accepted Answer

Matrix designs are adopted when the organization is faced with challenges and new opportunities, and they need to stretch their financial and human resources to meet these demands. The matrix structure allows for efficient and effective use of resources across teams, departments, and projects. It is not used in stable market environments or for economies of scale. Each unit containing sufficient resources to complete its own projects is more suited for a functional design.

Organizations Are Most Likely to Adopt Matrix Designs When