MATRIX-PROJECT STRUCTURE

Definition:
Matrix structure is an organizational structure that assigns specialists from different functional departments to work on one or more projects. An organizational structure in which employees continuously work on projects is called project structure.

DESIGN ENGINEERING

MANUFACTURING

CONTRACT ADMINISTRATION

PURCHASING

ACCOUNTING

ALPHA PROJECT

DESIGN GROUP

MANUFACTURING GROUP

CONTRACT GROUP

PURCHASING GROUP

ACCOUNTING GROUP

BETA PROJECT

DESIGN GROUP

MANUFACTURING GROUP

CONTRACT GROUP

PURCHASING GROUP

ACCOUNTING GROUP

GAMMA PROJECT

DESIGN GROUP

MANUFACTURING GROUP

CONTRACT GROUP

PURCHASING GROUP

ACCOUNTING GROUP

OMEGA PROJECT

DESIGN GROUP

MANUFACTURING GROUP

CONTRACT GROUP

PURCHASING GROUP

ACCOUNTING GROUP

Matrix Organization in Aerospace Firm

Example: Matrix Organisation in an Aerospace Firm

The addition of vertical dimension to the traditional horizontal functional departments, in effect, weaves together elements of functional and product departmentalization, creating a matrix arrangement. Another unique aspect of this design is that it creates a dual chain of command.

How does Matrix Structure work in reality???

Employees in an matrix organisation has 2 managers: Functional department manager Product or project manager Decisions such as promotions, salary recommendations and annual reviews are functional managers responsibility.

Project Structure:

Its a more advanced structure in which employees work continuously on projects. Example: In Otion Holding A/S, a hearing-aid manufacturer, there are no departments or employee job titles. All the work is project based, and these project teams form , disband, and form again as the work requires.

Here managers serve as facilitators, mentors, and coaches. They serve the project teams by eliminating or minimizing organisational obstacles and by ensuring that the teams have the resources they need to effectively and efficiently complete their work.

Advantages:

Its a fluid and flexible design that can respond to environmental changes. Faster decision making.

Disadvantages:

Complexity of assigning people to projects. Task and personality conflicts.

References:

Management by Stephen P Robbins and Mary Coutler.

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