Which organizational structure is created when project managers coordinate team members from different functional areas?

The matrix organizational structure is characterized by the way it integrates team members from various functional departments under the coordination of project managers. In a matrix structure, employees have dual reporting relationships; they report to both their functional manager and the project manager. This setup allows for more flexibility and improved communication across different areas of expertise, enabling project managers to draw upon the specialized skills necessary for their projects while still maintaining functional oversight.

In a matrix organization, resources can be shared across multiple projects, which optimizes resource utilization and fosters collaboration among departments. This can enhance the effectiveness and efficiency of project execution, as team members can contribute their skills while continuing with their primary responsibilities. The collaboration among different functional areas is a key feature of the matrix structure, making it particularly well-suited for complex projects that require diverse expertise.