ITPEC FE Morning April 2020 Question 75

Members belong both to a functional department and to a business-executing department — that dual membership defines a matrix organization.

Staff report to a functional manager for their specialism and to a project or product manager for the work in hand. Specialists can be shared across projects while the functional departments keep and build expertise. The price is two lines of command, which can conflict.

Answer (c)

Why not others:

• •(a) — a temporary team of experts drawn from other departments for a specific goal and time frame is a project organization
• •(b) — departments split by specialised function such as procurement, production, sales and finance form a functional organization
• •(d) — self-contained units by product, customer or region, each with its own functions and profit responsibility, form a divisional organization

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

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