Question 1 of 7
A project manager is assigned to a cross-functional product launch project. He reports to both a functional VP (Marketing) and the project sponsor. Resource requests must be approved by both the VP and the sponsor, and team members still report to their functional managers for day-to-day performance reviews. What organizational structure does this describe?
- A.Projectized organization — the PM has full authority over resources
- B.Functional organization — the PM has limited authority
- C.Hybrid organization — combining elements of agile and predictive
- D.Matrix organization — the PM shares authority with functional managers
Show answer and explanation
Correct answer: D
A matrix organization is characterized by dual reporting relationships — team members report to both functional managers and the project manager. Authority over resources is shared, which is the defining feature of a matrix. In a projectized organization, the PM has full authority and team members are dedicated to the project. In a functional organization, the PM has little to no authority and works through functional managers. 'Hybrid' in option D conflates methodology with organizational structure.