ITPEC FE Morning October 2021 Question 75
ITPEC FE Morning October 2021 — Question 75 of 80
A matrix organization creates cross-functional teams by assigning employees to both a functional department and a project simultaneously. This dual-reporting structure allows the organization to flexibly respond to changes in the business environment while retaining functional expertise.
Why not others:
- (a) Divisional organization — groups employees by product, region, or customer segment. Each division operates semi-independently, but there is no dual reporting between project and functional lines.
- (b) Line and staff organization — a traditional hierarchy where line departments handle core operations and staff departments (HR, legal, IT) provide advisory support. No cross-functional project teams.
- (d) Project organization — all members are assigned fully to a project under a project manager. Once the project ends, the team disbands. There is no permanent functional structure running in parallel.
Key rule: "Cross-functional team between project AND functional" = matrix organization (dual reporting).
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