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CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

A company in Chennai has a structure where each employee reports to a functional head and also to a project manager at the same time, so that specialists can be shared across several projects. Which organization structure is this?

This is a matrix organization. Employees report to both a functional head and a project manager, which lets specialists be shared across projects. Line and line-and-staff structures keep a single reporting chain, so they do not involve this dual authority arrangement.

  1. ALine organization
  2. BLine and staff organization
  3. CMatrix organizationCorrect
  4. DFunctional organization with a single boss

Explanation

A matrix structure overlays project teams on functional departments, so employees have two reporting lines, a functional head and a project manager. Line organization has a single vertical chain, and line and staff adds advisory specialists without creating dual reporting for the same work.

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