Do you see any reasons why managing by objectives may result in increased use of matrix organization structures?

A traditional organizational structure is typically built in a top-down hierarchy. The power in the organization resides at the top and the lines of responsibility flow from the top to the bottom throughout the individual branches of the structure. In this type of organizational design, responsibility for different business functions is usually not shared outside of major business sectors or divisions. In addition to the clear chain of command, a traditional structure has stronger departmentalization and narrower spans of control. This leads to duplication in skills and responsibilities across the organization

A matrix organization eliminates this duplication of skills and responsibilities by identifying functions or common components that are shared by multiple divisions, projects, or products. An organizational chart that allocates skills or resources across the sectors or divisional components as needed portrays the cross-functional nature of this organizational design. It creates a multi-functional team approach rather than a group of somewhat redundant functional skill sets.

Matrix organizations provide clear accountability within a specific business function and allow more efficient allocation of specialized skills across the entire business. By taking advantage of the shared services and skills and not having to develop and manage those skills themselves, the divisional or product line organizations can better focus on their core business objectives. This last point was one of the original driving forces behind the development and popularization of matrix organizations. Today, matrix organizations are used to describe more than just the product-based organization shown in these examples. For example, many IT project managers use smaller matrix-style structures for project and team organizations to track skills, tasks, and resources across multiple projects to ensure skills and resources are used properly.