Organizational Structure should reflect each team member's priority rule.  This can help each individual to determine priority of his pending work.  For example, if I am reporting to Mr. Smith, my highest priority must be the work assigned by Mr. Smith.  

When one resource is being utilized by multiple managers with the same rank, setting priority may become a difficult task.  In order to avoid this, the direct manager of the resource should set priorities.  Generally, a resource should not be shared.  When a resource is shared, you ultimately end up with an upside-down pyramid organizational structure where one resource must answer to 2 or more managers.  There are number of problems of this model even if the resource can distribute his/her work to complete work for 2 managers.  At the end, the resource is responsible to maintain 2 extra documentations, transition, time tracking, and support.  Determine when you need a new resource.  Identify work that can be postponed before sharing resources.  If a resource is not split up among projects, the management can track time allocation readily by projects.  Complicated procedures and checks can be created to make resources to report time, but at the end of the day, this leads to more questions and training to achieve consistent time reporting by everyone in your organization.  My philosophy is that let project managers determine time required for each resource based on project plan.  As long as his resource requirement is approved and satisfied project sponsors, the resource is accounted for his time.  Good project managers give enough work to his/her resources.  If the work gets done faster by a resource, do not penalize the quick turn-around time.  

Some organizations may require that resources cannot be effectively utilized by one manager at all times due to skill sets or due to seasonal work loads.  This type of organization should look into organizational pool where temporary organization structures can be created readily.  This type of structure will always ensure that each resource can report to one manager at all times.    

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