In an organisation using the matrix structure form of organisation design, the employees report to two managers: the 'horizontal' manager is the business or project manager, the 'vertical' manager is the:

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In a matrix structure, employees report to both a project or business manager (horizontal manager) and a functional manager (vertical manager). The functional manager is responsible for the management of functional areas such as marketing, engineering, or human resources.

In an Organisation Using the Matrix Structure Form of Organisation