💡 A matrix organization structure combines functional and project- based reporting. In this case: Employees from multiple departments (e.g., software development, testing, UI/UX design) work together on a single project. These employees report to a single project manager while still maintaining ties to their respective departments. The project manager has authority over the project’s tasks, while functional managers oversee broader departmental responsibilities. This setup is common in software development firms where teams are formed for specific projects but do not belong to a single function or product line permanently.