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

Meera Engineering Ltd. runs three projects, and each engineer reports both to a functional head (e.g., Design) and to the project manager of the project they work on. Which statement about this structure is correct?

This is a matrix structure, where employees report to both a functional head and a project manager. It helps share specialist skills across projects but violates unity of command, so conflicts of authority and confusion in accountability can arise.

  1. AIt gives unity of command because the project manager alone directs the engineers
  2. BIt is a matrix structure with dual reporting, which can cause authority conflictsCorrect
  3. CIt is a pure line structure with no specialists
  4. DIt is a divisional structure with no functional heads

Explanation

Dual reporting to a functional head and a project manager defines a matrix structure. It improves coordination and use of specialists but breaks unity of command, creating possible conflict. Option A ignores the functional head's role.

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