MATRIX ORGANIZATIONAL STRUCTURE

This form of organization is used almost in all projects, as it is efficient in resource use and
effective in meeting project objectives. This recognizes that the line of authority, responsibility,
coordination, control, and communication can exist both horizontally or diagonally and in the
traditionally pyramidal form. The project personnel has a responsibility to the functional
superior, the project manager, and the functional manager that cuts across the traditional line and
staff relations, leading to horizontal and vertical levels of command. By allotting their staff to
various project segments, the functional manager has the responsibility for all technical
decisions. This form is ideally suited for companies, such as constructions that are project-
driven.
In this form of organization, the personnel working on the project have a responsibility to their
functional superior as well as the project managers.
A matrix organizational structure is like a mix between a traditional hierarchy and a network. In
a matrix structure:
Multiple Lines of Authority: Instead of just one boss, employees report to multiple managers.
For example, they might have a functional manager (like a department head) and a project
manager (for specific projects).
Cross-Functional Teams: Employees from different departments or areas come together to
work on projects or tasks. This encourages collaboration and sharing of expertise across the
organization.
Flexibility: The structure allows for more flexibility and adaptability because it can quickly
adjust to changing priorities or demands. Employees can be assigned to different projects based
on their skills and availability.
Clear Communication: Communication becomes very important in a matrix structure to ensure
everyone understands their roles, responsibilities, and who they report to for different aspects of
their work.
Resource Sharing: Resources, including personnel, equipment, and expertise, can be shared
more efficiently across projects and functional departments. This helps optimize resource
allocation and utilization within the organization.
Complexity and Potential Conflicts: While the matrix structure offers many benefits, it can
also lead to increased complexity and potential conflicts. Employees may experience role
ambiguity or conflicting priorities due to reporting to multiple managers. Clear communication,
role clarification, and effective conflict resolution mechanisms are essential for mitigating these
challenges.
In simple words, imagine a grid where employees are organized both by their department (like
marketing, sales, or engineering) and by the projects they're working on. This structure helps
break down silos, encourages teamwork, and allows for a more dynamic way of getting things
done within an organization.
TYPES
1. Weak Matrix Organization
2. Balance Matrix Organization
3. Strong Matrix Organization

1
Weak Matrix Organization
 Power enjoyed by the functional manager completely.
 Project manager works like a project coordinator or project expeditor.

2
  Project coordinator can take Low bit decision on the allocation of the resources
 Project expeditor works only like communicator point between the customer and team.
 Project manager reports to functional manager

Balance Matrix Organization

A balanced matrix structure has many of the same attributes as a weak matrix, but the project
manager has more time and power regarding the project. A balanced matrix still has time
accountability issues for all the project team members since their functional managers will want
reports on their time within the project.In this type of organization
 Reasonable authority to project manager.
 Power enjoyed by the functional as well as project manager in the same manner.
 Resources working on the project face a complex communication.
 It is not clear – whom to report and who is the real boss.
Strong Matrix Organization
Strong matrix equates to a strong project manager. In a strong matrix organization, many of the
same attributes for the project team exits, but project manager gains power and time when it
comes to project work. The project team may also have more time available for the project even
though they may come from multiple departments within the organization.
 Power is enjoyed by the project manager Low bit more than the functional manager.
 PM can take decision on the allocation of the resources
 PM can utilize his or her project management skill on the projects.

Comparison of different Matrix Organizations

SR. Project Manager Balanced Strong

Weak Matrix
No Characteristics Matrix Matrix

Project Coordinator,
Project Project
1 Title Project Expeditor,
Manager Manager
Project Leader

Split focus between Project and Project and

2 Focus project and function Project Project
responsibilities Task Task

Balance Full
Less authority and
3 Power Authority authority
power
and power and power

4 Time on Project Part Time Full Time Full Time

5 Reporting Functional Manager A Manager of

Functional project
Manager managers
but shares

3
 authority
and power