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

Answer: Option D

Solution(By Examveda Team)

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.