Matrix Organization

A matrix structure is, in a sense, a combination and interaction of project and

functional structures and is suggested to overcome the problems associated with
project and functional structures individually. The key features of a matrix structure
are that the functional and project lines of authority are superimposed with each
other and are shared by both functional and project managers.
The project managers are generally responsible for overall direction and
integration of activities and resources related to the project. They are responsible
for accomplishing work on schedule and within the prescribed budget. They are
also responsible for integrating the efforts of all functional managers to accomplish
the project and directing and evaluating project activity. The functional managers
are concerned with the operational aspects of the project. The functional structure
is primarily responsible for the following:
 Providing technical guidance for the project
 Providing functional staff that is highly skilled and specialized
 Completing the project within prescribed technical specifications
Greiner sees matrix organization, in which cross-functional teams are used,
as a response to growing complexity associated with the organizational growth.
These complexities, both internal (size, technology) as well as external (markets,
competitors), create problems of information processing and communication that
are best dealt by matrix type of organization.
Matrix organizational design is most useful when there is pressure for shared
resources. For example, a company may need eight product groups, yet have the
resources only to hire four marketing specialists. The matrix provides a convenient
way for the eight groups to share the skills of the four specialists.
Each matrix contains three unique sets of role relationships: (1) the top
manager or chief executive officer who is the head and balances the dual chains of
command; (2) the managers of functional and project (or product) departments
who share subordinates and (3) the specialists who report to both the respective
functional manager and project manager.
An important aspect of the matrix structure is that each person working on
the project has two supervisors—the project manager and the functional manager.
Since the matrix structure integrates the efforts of functional and project
authority, the vertical and horizontal lines of authority are combined and the authority
flows both down and across. The vertical pattern is brought about by the typical
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line structure where the authority flows down from superior to subordinates. The
project authority flows across because the authority is really assigned for
coordinating efforts, that is a horizontal function, rather than giving orders and
directions that is a vertical function.
Stephen P. Robbins has emphasized that most schools of businesses in
colleges and universities are organized along the matrix structure, where they
superimpose product or programme structures such as undergraduate programmes,
graduate programme, executive development programme and so forth, over
functional departments of management, marketing, accounting, finance and so on.
Directors of program groups utilize faculty from the functional departments in order
to achieve their goals
It can be seen in the above illustration, that the directors of various
programmes staff their courses from the faculty of the various departments and the
same faculty serves various programmes. The matrix provides clear lines of
responsibility for each program. For example, the responsibility for the success or
failure of executive development programme lies directly with the programme
director. The matrix structure provides for coordination of faculty among the various
course offerings of the various programmes. Without the matrix, such coordination
would be very difficult.
Advantages of matrix organization
By its very nature, a matrix type of organization is more democratic, interactive
and participative with emphasis on interdependence of departments and increased
collaboration and cooperation among a wider range of people. The structure has
a number of advantages. Some of the strengths of matrix structure are as follows:
 Increased coordination and control: The project manager is in a position
to coordinate the many inter-related aspects of a particular project, since
there is both vertical as well as horizontal communication. This coordination
leads to greater and more effective control over operations.
 Full use of all available resources: Since the matrix organization, at any
given time, is handling a number of projects, the specialized staff and their
expertise can be utilized through many projects and no duplication of
personnel is necessary. If a specialist is no longer needed on a given project,
he can always be utilized for another project.
 Response to dynamic environment: Because of functional
interdependence and quicker feedback of information, the organization
responds quickly to a changing and uncertain environment so that the
decisions can be made more rapidly. This reduces the adverse effects of
any sudden changes in any factors affecting the organization.
 Excellence in inter-disciplinary specialization: Since the expertise of
specialists is fully utilized in inter-disciplinary areas and the organization itself
demands high-quality solutions to complex problems, these opportunities
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provide a sound basis for expanding the technical excellence into many
inter-disciplinary activities.
 Top management has more time for strategic planning and policy
formulation: Since most of the authority is delegated to project managers,
it leaves the central management comparatively free to get involved in longrange
planning rather than operational activities.
 Improving motivation and personal development: It is well-known
that people working together on a project with a team spirit operate in a
more participative manner. This improves coordination and harmony, which
in turn increases commitment to the organizational goals due to high
motivation. Also, due to the participative nature of decision-making process,
the team members are constantly accepting challenges that broaden their
outlook and provide grounds for personal as well as professional
development.