ITPEC FE Morning April 2018 Question 73

Matrix organization — every member belongs both to a functional department and to a project, so it combines the two structures.

Staff report to a functional manager for their specialism and to a project manager for the work in hand. Specialists can be reassigned from project to project as the business environment changes, while the functional departments keep and build expertise. The price is two lines of command, which can conflict.

Answer (c)

Why not others:

• •(a) Divisional organization — self-contained divisions by product, region or market, each with its own functions, and no cross-cutting project line
• •(b) Line and staff organization — a line organization plus specialist staff who advise but do not command, with no project dimension
• •(d) Project organization — members leave their departments to work only under the project manager and the team disbands at the end; there is one line of command, not a grid across projects and functions

Key rule: Two reporting lines, one by function and one by project, define a matrix organization; a single chain of command means a line, divisional or pure project structure.

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