- An individual reports functionally to one person, & administratively to another person.
- He is located where the administrative head sits.
- For example: The HR Head of a unit administratively reports to the Manufacturing Head of the Unit, while functionally reports to Corporate HR Head who sits at Head Office
- This happens on the following two occasions:
i. When the Organization grows in size
ii. Or the Organization manufactures more than one product at different locations
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