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Add. Info: in A Matrix Organization, The Functional Manager Shares Responsibility For Directing The Work of Individuals With The Project Manager

A matrix organization combines functional departments and project teams. Specialists from functional departments are assigned to projects and report to both their functional manager and the project leader. This allows organizations to flexibly allocate talent where needed for projects. However, it also introduces challenges around conflicting priorities and a lack of a single clear line of authority.

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Wilfred Martinez
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0% found this document useful (0 votes)
69 views

Add. Info: in A Matrix Organization, The Functional Manager Shares Responsibility For Directing The Work of Individuals With The Project Manager

A matrix organization combines functional departments and project teams. Specialists from functional departments are assigned to projects and report to both their functional manager and the project leader. This allows organizations to flexibly allocate talent where needed for projects. However, it also introduces challenges around conflicting priorities and a lack of a single clear line of authority.

Uploaded by

Wilfred Martinez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Matrix organization combines the functional and divisional structures. Add. Info.

The matrix
organization structure usually exists in large and multi-project organizations, where they can relocate
employees whenever and wherever their services are needed. The matrix structure has the flexibility of
relocating the organization’s talent. The employees are considered to be shared resources among the
projects and functional units. Specialists from specific functional departments are assigned to work on
one or more interdisciplinary teams. Thus, workers belong to at least two groups at the same time, such
as being a member of both the functional department and the product team.

The head of product team serves as project leader. The project leader directs his or her staff, who are
also from the functional departments. This project-type structure consists of permanent teams that cut
across functional departments to support specific products, projects, or programs.

Add. Info: In a matrix organization, the functional manager shares responsibility for directing the work of
individuals with the project manager.

Figure 1. what a matrix organization looks like

Add. Info. Implicit in the definition of the matrix


organization is the recognition that the project is
temporary whereas the functional departments are more
permanent. Although all organizations are temporary in
that they are constantly changing, the matrix is designed
to be temporary and a particular organizational structure
lasts only for the finite life of the project.

Examples of matrix organizations:

Figure 2. Engineering matrix organization Figure 3. Product industry matrix organization

Figure 4. Construction
industry matrix
In matrix structure, therefore, every employee has two bosses—functional department manager and
the project leader. It can be said that matrix structure is unique because it breaks the unity of command
concept in management. (add. Info: This principle advocates that only one boss should give order to an
individual so that he can understand what to do and can perform systematically with greater efficiency.)
With a dual chain of command, a marketing staff, for example, would be responsible to the marketing
manager and to a project leader. The matrix structure has strong interdependencies between
departments.

The main advantages of matrix structure:

- It promotes the development of teams within projects or programs.


- It facilitates coordination when the organization has several projects and interdependent
activities.
- The direct and frequent contact between the different specialists in the matrix structure allows
better communication and greater flexibility among members.
- The dual lines of authority prevent the formation of functional silos.
- It allows sharing of skills of the specialists among the different project groups. There is no
monopoly of skills committed for just one group.

The disadvantages:

- The two-boss system which may create confusion among members.


- Ambiguity may set in because the principle of unity of command was broken. The problem of
“who reports to who” may escalate leading to conflict. Add. Info: Fayol has stated “As soon as
two superiors impose their authority over the same person or department, uneasiness makes
itself felt. Dual command is a perpetual source of conflict.”
- It may also foster a power struggle between a leader of the functional department and a leader
of the project team, and also, among the project leaders. For instance, project leaders may
argue about getting the best specialist within their organization for their respective projects.

Summary
A matrix organization is defined as an organization where people have to report to more than
one boss. The matrix organization structure is a blend of the projectized organization and the
functional organization, and tries to blend the best of both worlds. In a projectized organization,
the project manager has all authority and power while in a functional organization, the
functional manager has the authority. In a matrix organization, they both hold power, and this
power sharing changes according to the type of matrix structure of the organization. A matrix
structure is suited to big organizations which operate in a dynamic environment and need a
quick response to market demand.

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