Question : Statement 1: A matrix organizational structure enhances cross-functional collaboration.
Statement 2: It involves a tall hierarchy with multiple layers of management.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Correct Answer: Statement 1 is true, and Statement 2 is false.
Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is false.
Statement 1 is true. A matrix organizational structure is designed to enhance collaboration and communication across different functions or departments within an organization. It encourages employees to work on cross-functional teams and projects, promoting collaboration and integration of diverse perspectives and expertise.
Statement 2 is false. A matrix organizational structure typically involves a flatter hierarchy with a dual reporting structure. Employees report to both functional managers and project or product managers, which can reduce the number of layers and levels in the organizational hierarchy compared to a traditional tall hierarchical structure.
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