This document discusses matrix organizational structures. A matrix structure combines two or more traditional organizational structures, allowing employees to have dual reporting relationships to both a functional manager and a project manager. The document defines matrix organizations and describes three common types: weak, balanced, and strong matrix structures. It also outlines advantages like skills development and resource optimization, as well as disadvantages such as lack of unity of command. Ways to overcome disadvantages include clearly defining roles and maintaining strong communication.
3. Development
o Matrix organization was introduced in
1960’s for solving problems in aerospace
industry.
o This design got popularity in 1970’s when
big companies like PHILIPS, IBM, HP used
this structure.
4. Definition
“Matrix organizational is structure is a company structure in
which reporting relationship are set up as a matrix rather
than in traditional hierarchy.”
5. Matrix organization
o Matrix Organization is a combination of two or more organization
structure.
o In matrix organization employees have dual relationship – generally
to both a functional manager and a project manager.
o In this structure employee have to report two bosses.
o It allows the sharing of highly skilled resources between functional
units and projects.
7. Types of matrix organization
o Weak matrix organization.
o Balanced matrix organization
o Strong matrix organization
8. Weak matrix organization
o Project manager have a limited power and authority.
o Project manager have a part time role.
o No administrative staff will report to him.
o Project manager have the role of coordinator.
o Functional manager controls the project.
9. Balanced matrix organization
o Power and authority are shared between both the manager.
o Project manager have a full-time role.
o Project manager have an administrative staff under him.
o Both manager controls the project.
10. Strong matrix organization
o Power and authority lies with project manager.
o Project manager have a full-time role.
o Project manager have administrative staff under him.
o Project manager control the project budget.
o Functional manager have limited role.
11. o Development of skills
o Specialization
o Optimum use of Resources
o Motivation
o High efficiency
Advantages
12. Disadvantages
o Absence of unity of command
o Two bosses
o Difficulty of balance
o Complexity
o High operation cost
o Power struggle
13. Way to overcome disadvantage
o Their must be balance between the project and functional manager. This
helps to avoid confusion and conflict.
o There must be well defined and strong communication in all directions.
o Their must be balance between distribution of power and authority.
o Any conflict between project and functional manager should be resolved
as early as possible.
o Roles and responsibilities should be clearly addressed.
14. Conclusion
o Matrix organization structure has a serious impact on projects
management.
o This is evolved to fill a need for an organization capable of dealing
with large number of small sized projects or contracts.
o The matrix structure looks for creating great products and solutions.
o It allows the sharing of highly skilled resources between functional
units and projects.