Which one of the following types of organizations would benefit from a matrix structure?
A
Diverse independent businesses in a conglomerate
B
Organizations growing through merger and acquisition
C
Small companies with few plants and limited product or service diversity
D
Small, sophisticated service companies
Correct Answer: Small, sophisticated service companies
Small, sophisticated service companies one of the following types of organizations would benefit from a matrix structure. A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager.