Matrix Management

question 21

Multiple Choice

Matrix management

• A) creates an environment in which the unity-of-command principle is strictly followed.
• B) is a collection of independent, mostly single-function firms that collaborate to produce a good or service.
• C) is composed of dual reporting relationships in which some employees report to two superiors.
• D) involves holding employees together by contracts that stipulate results expected, rather than by hierarchy and authority.
• E) results in a centralized decision-making system.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output decreasing with increasing scale.

Marginal Output

Refers to the additional output that results from using one more unit of a production input, such as labor or capital, in the production process.

Total Output

The total quantity of goods and services produced in an economy during a given period.

Fixed Cost

Expenses that do not change in total regardless of the level of output or activity, such as rent, salaries, and insurance.