Business Structures

Question 1

What is a matrix business structure?

Answer 1

A structure which provides a formalisation of management control between different functions

Question 2

What are the advantages of a matrix structure?

Answer 2

Greater flexibility
Improves communication within the orginisation
Provides a structure for allocating responsibility to management for different end results
Encourages greater divisional cooperation

Question 3

What are the disadvantages of matrix business structures

Answer 3

Dual authority may create conflicts between managers

Confuses the line of authority - Increases stress for workers

Requires consensus and agreement which can slow decision making