Solid-line reporting is a type of business reporting in organizations with a matrix management structure. Solid-line reporting indicates that the entire organization of the functional discipline reports to the functional discipline's executive, even those in distributed lines of business.
Solid-line reporting is a direct reporting relationship implying usual objective setting, supervisory, and performance management relationship that a manager has with direct reporting. The relationship between two roles in the organization structure is direct. A solid line reporting structure ensures a well-defined relationship between a leader and a subordinate. The leader maintains financial resources to staff the subordinate, and conducts performance reviews with the subordinate. It is always clear that the solid line boss is the leader. Officially, the solid line maintains authority over the subordinate.
When there is conflict in direction between a solid line leader and dotted line leader to a subordinate, the solid line leader will always prevail. This is because the solid line leader typically has final authority over compensation and retention.