ORGANIZING — OCM STD 12 Commerce — Question

Matrix structure can result in internal complexity. Some employees may become confused as to who is their direct supervisor. For example, an employee may receive different directions concerning the same thing from supervisors in different departments.

• Miscommunication and ineffective managing can result in employee dissatisfaction and low morale.
• Prolonged issues may cause the organization to experience high employee turnover.
• Matrix organizational structure is expensive to maintain.
• A company’s overhead cost typically increases because of the need for double management.