The correct answer is: D. top management has more time to devote to long-term strategic issues.
A matrix structure is a type of organizational structure in which employees report to two or more managers, typically a functional manager and a project manager. This structure is often used in organizations that need to be able to respond quickly to changes in the market or to manage multiple projects simultaneously.
One of the advantages of a matrix structure is that it allows top management to focus on long-term strategic issues. This is because the functional managers are responsible for the day-to-day operations of the organization, while the project managers are responsible for the completion of specific projects. This division of labor allows top management to focus on the big picture and to develop strategies that will help the organization achieve its long-term goals.
The other options are not correct because:
- A. it is easily understood by the people involved. This is not necessarily true. A matrix structure can be complex and difficult to understand, especially for employees who are not familiar with it.
- B. improved lateral communications. This is a potential advantage of a matrix structure, but it is not guaranteed. Lateral communication can be improved in any type of organizational structure, not just a matrix structure.
- C. product lines can be recognised as cost centres, it eases financial control. This is not necessarily true. Product lines can be recognized as cost centers in any type of organizational structure, not just a matrix structure. Additionally, financial control can be difficult to achieve in a matrix structure, as there are often multiple people who are responsible for the financial performance of a project.