What is a matrix organization Form and how does it work?

What is a matrix organization form?

The matrix form of organization seeks to achieve the twin objectives of efficient use of resources and effective realization of project objectives at the cost of greater organizational complexity. In this form of organization, the personnel working on the project have a responsibility to their functional superior as well as the project managers. To the extent a project manager can acquire the functional managers will be forced to dispense with the same. 

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. 

Matrix Reporting structure

Why do we use matrix organizational form structures?

The need for a matrix organization structure was for an organizational form capable of managing very large and complex, projects, and problems, and for managing limited resources. The traditional hierarchical management organization deals with the delivered complexity and the full-size quantity of data that needs to be processed, and the traditional control principle changed into little assistance in fixing those new and precise troubles.

Types of Matrix Organization form:

Types of Matrix Organization

• Weak matrix Organization:  In this type of organizational structure, a functional manager checks all factors of a project and acts as the primary source of decision-making. In a Weak matrix, the project manager will the least amount of decision-making as compared to other matrix management types. When the project manager having the limited Authority over the project because the project budget and timeline is in a hand of the Department head. Communication plan can help for the compressing the lost in a Weak Matrix.
• Balanced matrix Organization: In this type of organizational structure, more authority is given to the project manager as compared to the functional manager. Department head and the project manager having Equal Authority and team members will report to both of them. This allows the team to forward project smoothly.
• Strong matrix Organization: This type of organizational structure, provides equal or more power between the project manager and the functional manager.

Advantages of Matrix Organization Form:

• This form of organization retains the expertise and management skills of functional managers while executing the project. The expertise available can be applied in the most flexible and efficient and efficient manner to benefit several projects.
• Matrix project organization is a fascinating arrangement for highly skilled professionals who want to work on a new and challenging project but are reluctant to leave their parent organization in which their professional skills and attributes might not be properly respected.
• The project manager can devote his time to complex issues of the project and coordinate various tasks and priorities of the organization without being distracted by any other detail of project implementation.
• Policies and procedures can be set up independently for each project provided that they don’t contradict company policies and procedures.
• A strong technical base can be developed, and much more time can be devoted to complex problem-solving. Knowledge is available for all projects on an equal basis.
• Each person has a “home” after project completion. People are susceptible to motivation & end item identification.

Disadvantages of Matrix Organization Form:  

• Each project organization operates independently.
• Functional managers may be biased according to their own set of priorities.
• People don’t feel that they have any control over their destiny when continuously reporting to multiple managers.
• Difficulty in monitoring and controlling.
• Multidimensional workflow and information flow.

Conclusion: Matrix Organization

When operating under a matrix management approach the authority and responsibility of each manager must be clearly defined understood and accepted by both functional and program people. These relationships need to be spelled out in writing.