Here is an excellent article about the pros and cons of matrix structures at the Bloomberg Business. Late Jay Galbraith opens with listing the benefits of those complex organizational structures and Guido Quelle follows with his counter arguments. According to Jay, matrix organizations are necessary to effectivelly deal with increasingly complex challenges that modern organizations face. Guido, on the other hand, highlights experiences of the organizations, which implemented this form. They reported an increase in ambiguity, slower decision making, and blurred responsibilities. The exchange raised an important point regarding having the right type of managers. To work effectivelly, the matrix structure requires collaborators rather than command and control types.
The most interesting part of the article, though, is the comments section, where Jay, Guido and others continue the discussion. This is one of the best introductions to the debate on the structuring of the global, multi-product organizations I have come across recently.