IGCSE Business Studies Section 2 – People in Business Practice Test

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Which of the following describes an advantage of a matrix structure?

Increased payroll costs.

Better project management.

In a matrix structure, staff work on projects with specialists drawn from different departments and often report to more than one manager. This setup is meant to improve coordination and the use of expertise across the organisation, which helps manage projects more effectively. By having access to the right people from various functional areas and enabling direct communication across boundaries, project managers can plan, resource, and resolve issues more quickly, leading to better project management. The other statements don’t describe an advantage here: payroll costs can even rise due to dual reporting and increased coordination; a single reporting line isn’t present in a matrix; and cross-functional teams are a core feature, not something eliminated.

Clear, single reporting line.

Elimination of cross-functional teams.

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