The document discusses an organizational structure that emphasizes a matrix system for managing large projects, where employees from various functional areas collaborate without leaving their primary roles. It outlines the roles of functional and project managers and emphasizes the advantages of a hybrid structure, such as enhanced flexibility and capability development, alongside challenges such as confusion among mid-level management and potential cost increases. Ultimately, the matrix structure is recommended for its ability to adapt to market changes while encouraging valuable contributions across the business.

2. An organizational structure that facilitates the horizontal flow of
skills and information. It is used mainly in the management of large
projects or product development processes, drawing employees
from different functional disciplines for assignment to a team
without removing them from their respective positions.

4. • combination of two
or more
organization
structures
Hybrid
Structure
• Manager has
authority over the
technical
(functional) aspects
of a project.
Functional
Manager
• has authority over
the administrative
aspects of the
project.
Project
Manager
Features

5. • reduce the
productivity and
profitability of
the project
Problem -unity
of command
• Project Manager-
administrative
and functional
manager -
technical
Specialism
• multi-project
organizations
Suitability
Features (Contd).

6. Business
• To deliver work globally effectively
• manage supply chains
• run integrated business regions, functions and processes.
Flexibly
• reflect the importance of both the global and the local,
• the business and the function in the structure,
• to respond quickly to changes in markets and priorities.
Capabilities
• helps develop individuals with broader perspectives and skills
• can deliver value across the business
• manage in a more complex and interconnected environment.
Advantages of Matrix

7. Mid level
management
• having multiple supervisors can be confusing
• lower productivity
Mid level
management
• frustrated
• a lack of clarity with priorities.
• over-burdened
Supervisory
management
• difficult to achieve results within their area of expertise
• staff being pulled in different directions.
Disadvantages of Matrix

8. Selection is done according to the need of the project
Use of a project team is dynamic
Problems can be easily detected
Project manager is accountable and responsible for the project
Application of advantages
on projects

9. Conflict between line manager and project manager
Lots of independence
Cost increases if there is more project manager
Application of disadvantages
on Projects