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CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority

A company assigns engineers to specific projects while they remain members of their permanent engineering department, so each engineer reports to both a project manager and a department head. This is a:

This is a matrix organisation. Employees belong to a functional department and also work under a project manager, so they have dual reporting lines, combining functional expertise with project focus.

  1. AMatrix organisationCorrect
  2. BLine organisation
  3. CFunctional foreman system only
  4. DInformal organisation

Explanation

A matrix structure overlays project teams on functional departments, giving employees two reporting lines. Line organisation has a single reporting line, and an informal organisation arises from social relations rather than formal design.

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