Newtech limited is a new start-up financial technology company based in the East Coast of Scotland. As a start-up, it has 50 full-time employees and has successfully won a number of lucrative contracts with national and international banks to design their online banking systems. To ensure the organisation operates effectively, the company has adopted a matrix structure. This structure is designed to encourage greater collaboration amongst employees and business units and foster greater knowledge sharing across the organisation. You have been approached by the chief executive of Newtech limited and have been asked the following two questions: 

What people-related problems would you expect Newtech Limited to encounter from operating a matrix organization structure?  

What are the key responsibilities of managers with a matrix structure? 

Required: Address each of the two questions posed, demonstrating a knowledge of how matrix organizational structures work; the people problems arising from matrix structures and the unique challenges faced by managers in matrix organisations.