Despite the strong support for the efficacy of a matrix organization, there are some potential problems to consider:

• employees do not recognize a 'boss' to whom they feel responsible
• there is a mistaken belief that matrix management is the same as group decision-making
• a matrix design encourages a power struggle among managers
• uncontrolled 'layering' resulting from the dynamics of power rather than the logic of design
• a matrix thrives in group and division levels but not at higher levels in the organization
• risk of high costs due to excessive overhead

What type of healthcare organization will do well having a matrix organization, and what type of organization will not do well? Explain.