Final answer:
Conflicts in organizational structures are often associated with Matrix organizations due to shared authority between functional and project managers. Their dual-reporting structure can lead to ambiguity and conflict, emphasizing the need for clear guidelines on authority and decision-making.
Step-by-step explanation:
During project formation, the organizational structure selected will have a major impact on the ways in which conflicts are handled. Lack of clarity about the relative power/influence/authority of the PM and the functional managers is a major component of all conflicts involving Matrix organizations. Matrix organizations often face this type of ambiguity because they feature a blend of project-based and functional structures, where employees report to both functional managers and project managers, which can lead to confusion and conflict over authority and resources.
It's important to understand that in matrix organizations, the power, roles, and responsibilities are shared between the project and functional management. Identifying and establishing clear guidelines for decision-making and conflict resolution is crucial to project success. This stands in contrast to traditional hierarchical structures where roles and lines of authority are clearly defined.