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    Question

    Which of the following statements is not true about the

    Matrix type of Organization Structure?
    A It combines two structures – functional departmentation and project structure. Correct Answer Incorrect Answer
    B Project department is a permanent feature of the matrix structure and retains authority for overall operation of the functional units. Correct Answer Incorrect Answer
    C Project teams are created whenever specific projects require a high degree of technical skill and other resources for a temporary period. Correct Answer Incorrect Answer
    D Project teams form the horizontal chain and functional departments create a vertical chain of command. Correct Answer Incorrect Answer

    Solution

    This statement is false. In a matrix structure, the functional departments (like Marketing, Finance) are permanent and retain authority over their functional areas and resources. Project teams are temporary and are created for specific projects. They draw personnel and resources from the functional departments.

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