A Matrix Organization is a type of management structure that combines functional and project-based teams. In this setup, employees report to multiple managers, typically a functional manager and a project manager. This allows for more flexibility and efficient use of resources, as team members can be assigned to various projects based on their skills and expertise. In a Matrix Organization, collaboration is key, as it encourages communication across different departments. While this structure can enhance innovation and responsiveness, it may also lead to confusion regarding authority and responsibilities, requiring clear guidelines to ensure effective teamwork and decision-making.