This is commonly seen in project management where an engineer, for example, reports to the chief engineer functionally, but reports to the project manager on operational project issues.
Matrix management also is common in branch offices. The accountant in the Tokyo office reports functionally to the Vice President of Accounting in headquarters in London, but reports operationally to the Regional Manager in charge of the Tokyo office.
Generally the functional reporting relationship is stronger, because the functional manager controls the individual's compensation and evaluations.
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