I prefer dotted lines, so long as the people at the end of them realize they don't have all the information about corporate needs - and neither do I. We make the best decisions we can based on the combined information we have, and when in doubt we search out additional information from our managers or others. The better our information, the fewer the restrictions, the more productive we are and the better the outcome.
The best projects I've worked on were the ones where every member took responsibility for their "piece of the party", and stepped in to help as their schedule allowed when another team member needed help.
The worst projects I've worked on were the ones where everyone waited for a manger to tell them what to do next. Always late, over budget, over estimate, over cost.
Communication is key, but don't wait for it to come to you - go out and get you some!
Here there be dragons...,