Which is a disadvantage of a matrix structure?

• A. A single chain of command simplifies communication
• B. Duplication of resources, such as administration staff, can occur
• C. There is no need to coordinate across functions
• D. Projects always run under budget

Answer: (B)

In a matrix structure, authority is spread across both functional managers and project managers, which creates dual reporting and shared resources. This setup makes coordination across different parts of the organization more complex, and it often leads to duplication of resources—such as administrative staff—that end up serving multiple projects or report to more than one manager. The result is higher overhead, potential conflicts over priorities, and unclear accountability, making this a real disadvantage of the matrix approach.

Think about why the other ideas don’t fit: a matrix doesn’t simplify communication with a single chain of command; it actually adds layers of coordination and potential confusion. Cross-functional coordination is a core feature of matrix structures, so saying there’s no need to coordinate across functions isn’t accurate. Finally, projects running under budget isn’t guaranteed by the structure itself; budget outcomes depend on planning, execution, and external factors, not the matrix setup alone.