A functional organization structure groups employees by specialty, while a matrix organization blends functional reporting with project management. A functional structure gives project managers little authority, while a matrix gives more power to balance priorities between projects and functions. A matrix can be weak, balanced, or strong depending on whether functional managers or project managers have more control over resources. Both structures have advantages and disadvantages related to coordination, focus, authority and efficiency.

1. FUNCTIONAL AND MATRIX
ORGANIZATION

2. FUNCTIONAL ORGANIZATION:
 A functional organization structure is a classical hierarchy in which each
employee has a single superior.
 Employees are then organized by specialty and work accomplished is
generally specific to that specialty.
 Communication with other groups generally occurs by passing information
requests up the hierarchy and over to the desired group or manager.
 Of all the organizational structures, this one tends to be the most difficult for
the project manager.

3.  The project manager lacks the authority to assign resources and must
acquire people and other resources from multiple functional managers.
 In many cases, the project's priority is viewed lower than operations by
the functional manager.
 In these organizations, it is more common for the project manager to
appeal to the senior management to resolve resource issues.

4. STRUCTURE:

5. ADVANTAGES AND DISADVANTAGES:
Serial ADVANTAGES DISADVANTAGES
No.
1. Specialization Double Command
2. Better Control Problem of Succession
3. Reduction of work load Delay in Decision Making
4. Higher efficiency Complexity
5 Flexibility Lack of Coordination
6. Easier Staffing Expensive

6. MATRIX ORGANIZATION:
 A matrix organization is a blended organizational structure.
 Although a functional hierarchy is still in place, the project manager is recognized
as a valuable position and is given more authority to manage the project and
assign resources.
 Matrix organizations can be further divided into weak, balanced, and strong matrix
organizations. A weak matrix gives more authority to the functional manager (FM),
whereas the strong matrix gives more power to the PM. As the name suggests,
the balanced matrix balances power between the FM and the PM.
 The difference between the three is the level of authority given to the project
manager (PM).

7. STRUCTURE:

8. ADVANTAGES AND DISADVANTAGES:
Serial ADVANTAGES DISADVANTAGES
No.
1. Single Project Focus Complex relations
2. Highly Flexible Project Group not
homogenous - Low
morale
3. Effective Command No unity of Command
4. Better Utilization of Services High concentration on
respective functions -
Conflict

9. DIFFERENCE BETWEEN FUNCTIONAL AND
MATRIX ORGANIZATION:
Functional Weak Matrix Balanced Strong Matrix
Matrix
Description Traditional The PM and The PM and FM The PM and FM
organization FM share share share
with a direct responsibility responsibility, responsibility,
supervisor. , with the FM with each with the PM
having more having equal having more
authority. authority. authority.

10. Authority of Very low. Low. Low to Medium to
project manager medium. high.
Resource Very low. Low. Low to Medium to
availability medium. high.
Project manager Part-time. Part-time. Full-time. Full-time.
involvement

11. Advantages The FM holds The PM gets The PM and The PM gets
accountability some FM share the more
for the authority to responsibility authority to
project. manage the of the assign
project. project. resources
and manage
the project.
Disadvantages The PM holds The FM can The PM and The FM may
little or no see the PM FM can be feel out of
authority. as a threat confused the loop.
and cause about who
conflict. manages
what.