Which of the following is true of a matrix organizational structure? A matrix organizational structure is hierarchical, but instead of functional managers reporting to the CEO, program managers report to the CEO. In a strong matrix organizational structure, the project manager controls the project budget and has moderate to high authority. In a matrix organizational structure, employees are organized into departments according to their skills, and there is little interaction between employees from different departments. Project managers in matrix organizations have staff from only a single functional area working on their projects.