Business I / Organizing and Structure
Practice question · Select all that apply

Which are predictable costs of a matrix structure?

Hints
  1. This structure breaks single-boss reporting deliberately.
  2. The costs are conflict, negotiation time and appraisal ambiguity.
Show the answer
  • B. Ambiguity over who evaluates performance
  • C. Employees negotiating conflicting demands from two bosses
  • D. Slower decisions when the two chains disagree
Why

The matrix breaks unity of command on purpose and pays in conflict, negotiation time, and appraisal ambiguity. Functional expertise is what it keeps, that retention is the whole reason to pay the other costs.

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