Discuss whether the functional managers risk a loss of employee loyalty with the new change. Hyten Corporation was management to examine the idea of changing the organization structure from informal project management to formal project management. Many changes will have to be made when Hyten Corporation introduces formal project management for it to be beneficial.

The main issue that would affect employee loyalty would be their appraisal or evaluation as this will be very crucial to the happiness of the employees and the success of projects. Employees must feel they are being given a square deal, especially in the evaluation procedure. This is where the role of the functional managers would collide with that of the project managers. In the formal project management model project managers would also be key players in the evaluation process. In fact in the formal project management structure, project managers would be responsible for accomplishing the stated project objectives. A functional manager is a person who has management authority over an organizational unit such as a department - within a business, company, or other organization. Functional managers have ongoing responsibilities, and are not usually directly affiliated with project teams, other than ensuring that goals and objectives are aligned with the organization's overall strategy and vision. Who will do the evaluation? If any given organization does not adequately define roles and ensure harmony, it will result in territorial struggles and other foolishness. For instance, both managers may feel it’s their role to give a performance evaluation and fight with each other. Approval for various things like replacement equipment, forms, etc. may become contentious. This question decides where the bias of the employee would be. Any disagreement between the two managers concerned would put the employee in