Matrix organization is a hybrid structure combining two structures namely, functional department with pure project structure. Functional structure is a foundation of the matrix organization and has all the authority for the overall operation of the functional units.
Project teams evolve only when specific projects require a high degree of technical skills and other resources for a temporary period. Functional departments create a vertical chain of command while the project teams form the horizontal chain.
The free-rider problem arises when an individual <u>[</u><u>C]</u><u> </u><u>does not pay for a good because nonpayment does not prevent consumption.</u>
