Lagoon Consulting Group restructured its operations by grouping employees from Finance, IT, and Operations into project-specific teams while retaining their functional departments. The Group Chief Executive reported both increased coordination and role conflict among employees. Which organisational structure has Lagoon Consulting Group adopted?

A matrix structure combines functional and project-based groupings, meaning employees report to both a functional manager and a project manager simultaneously. This dual reporting relationship is the primary source of the role conflict described. The increased coordination across departments is a key advantage of the matrix structure, confirming this identification.