Organization Matrix Structure

Organization Matrix Structure: To effectively identify the activities in a project, it is important to have an organisational structure in place. Task allocation to budgeting and everything in between are all part of a project’s activities. As a result, the organisational structure should be efficient, adaptable, and perhaps inventive, rather than inflexible.

Every organisation has a structure, and the structure is defined by the goals of the organisation. Operating processes and routines will be standardised based on how an organisation is structured. It will also identify who is involved in what and what project tools are most appropriate for the task at hand.

Because it speaks to both the result of the project and the role of the management creating it, the matrix organisational structure is often utilised in project management. Let’s take a deeper look at this organisational structure to see what advantages and disadvantages it has in project management.

A matrix organisational structure is a mix of two or more different kinds of organisational systems. The matrix organisation is the framework that connects all of these other organisational systems and balances them out. There are usually two chains of command, with project team members reporting to two different supervisors or managers.

One manager is usually in charge of functional tasks, while the other is in charge of more conventional project management. Because the power balance between these two types of managers isn’t organizationally defined, these positions are variable and not set.

To reinforce strengths and compensate for deficiencies, it will utilise the best of both structures and management styles. If a company is producing two goods or services at the same time, the matrix organisational structure allows them to organise both and leverage the duality to their advantage.

Organization Matrix Structure

The following are the key characteristics of the matrix organisation:

(1) Matrix organisation concentrates emphasis on a limited number of initiatives. The project manager is assigned responsibility of the project and is granted the required power to finish it according to the time, cost, quality, and other requirements provided to him by senior management.

(2) The project manager assembles teams of people from diverse departments. He delegated tasks to several functional units. After the project is completed, the functional groups return to their departments to be reassigned to new projects. The division manager has the option of reassigning the project manager himself.

(3) The project and functional managers have distinct responsibilities. With relation to his project, the project manager takes a generic managerial approach. The integrity of each functional manager’s role is his responsibility.

(4) In a matrix organisation, project management is critical to the style of thinking and functioning.

According to the matrix organisation structure, the Construction Division’s workload is made up of a variety of projects, each with its own set of goals and deadlines. Each of the Division’s functional divisions offers functional assistance to the Division’s initiatives. The project manager is assigned power and accountability for the project’s accomplishment.

Each project’s functional workgroups are appointed full-time from their respective functional departments. They are allocated back to their parent departments after the project is finished or their services are no longer needed. The extent to which distinct workgroups participate is determined on the nature of each project. Each project’s ideal mix of personnel and resources for achieving the project’s objectives changes from time to time.

It’s important to understand the difference between project and matrix organisations. In a pure project organisation, the task’s whole duties, as well as all the resources required to achieve it, are generally entrusted to a single person known as the Project Manager. In big projects, project organisational units resemble a typical division and are usually self-contained. However, in a matrix organisation, the project manager does not have total control over resource allocation. Instead, he distributes them to the rest of the company.

Advantages

One of the most significant advantages of a matrix organisational structure is that it enables highly trained resources to be shared across functional units and projects. Communication is open, which allows information to flow more freely across the company. Because the matrix organisational structure supports greater communication, it allows for more cooperation and a more integrated, dynamic organisation by allowing the customary barriers between units to become more permeable.

Employees that want to broaden their expertise and skill sets would benefit greatly from this arrangement. They may be involved in a variety of facets of various projects. It places them in an atmosphere that encourages learning and allows them to advance professionally.

Furthermore, the functional departments have highly trained personnel who may assist the project team if necessary. This generates a pool of important resources from which to draw, giving you greater freedom to address problems without having to find new ones.

Furthermore, since the structure creates a more secure atmosphere where job security is increased, efficiency are improved and teams stay loyal. When people believe the rug isn’t going to be yanked out from under them, they work more and invest more in initiatives.

• It provides operational flexibility and independence.
• It aims to make the best use of available resources.
• It concentrates on the ultimate outcome.
• It preserves one’s professional identity.
• It makes an employee accountable for resource management.

Disadvantages

When a team member is assigned to two supervisors, it might be confusing. This may also lead to unneeded confrontation. This is particularly true if both managers are in charge of the same department.

Then there’s the project manager and functional manager. There may be some friction between these two managers about who they regard to be the organization’s authority. If team members’ roles and duties aren’t clearly defined, they may get confused as well. And if resources are few and rival managers are vying for them, the resulting misunderstanding may lead to conflict.

A matrix organisational structure has a lot of managers, which isn’t everyone’s cup of tea. There’s also the possibility of a monetary cost. Increasing the number of employees in management roles will have an influence on the company’s bottom line.

Working in a matrix organisational structure might put a burden on team members since their workload can be substantial. They’re often given their normal duties followed by extra work, which might lead to fatigue or the neglect of certain jobs.

Finally, there’s the cost of the matrix organisational system as a whole. This includes not just having numerous managers, but also the additional cost of maintaining resources that aren’t always in use.

That isn’t to say that some of these drawbacks can’t be overcome. It’s just a matter of being aware of the stressors and working more collaboratively to alleviate them.

Demerits:

• It necessitates a higher level of cooperation.
• It goes against the notion of command unity.
• It might be difficult to exactly define power and responsibility.
• Working with two supervisors may be inconvenient for employees.

Limitations:

(I) The matrix organisation is incompatible with the traditional idea of command unity. Personnel in functional departments must deal with two bosses: the project manager and the functional manager. As a consequence, if a project unit fails to meet its objectives, a functional group might simply deviate from its responsibilities.

(ii) In a matrix organisation, the coordination challenge is exacerbated since neither the functional head nor the project manager has direct responsibility over project operations. The project manager serves as a coordinator and facilitator, but he or she lacks the necessary authority.

(iii) A matrix organisation is not a compact and homogenous group. Organizational efficiency may be harmed by the complexity of vertical and horizontal links. Deputies may strive to emphasise their particular specialties at the expense of the project as a whole. There is a lack of clarity in terms of jurisdiction.

(iv) In the matrix organisation, informal linkages exist alongside official ones. As a result, organisational linkages grow increasingly complicated, posing a coordination difficulty.

(v) In a matrix organisation, a dual reporting relationship may lead to indiscipline, uncertainty, and role conflict. The functional representative who is under dual command is unable to meet both employers’ goals.

(vi) Each project manager is responsible for the effective completion of his or her project. Each project manager must exchange resources with other project managers to do this. This might lead to competition among project managers.

Guidelines for Effective Matrix Management:

• Define the project’s or task’s goals.
• Clarify managers’ and team members’ roles, authority, and duties.
• Ensure that influence is based on facts and expertise rather than status.
• Balance the functional and project managers’ authority.
• Choose a project manager with project management expertise who can give direction.
• Take steps to improve your organisation and teamwork.
• Install suitable pricing, terms, and quality controls that alert you to any deviations from the norm.
• Project managers and team leaders should be adequately compensated.

How to Use ‘Matrix Organization’ to Its Full Potential:

(1) Unitary Command is replaced with a multiple command structure:

The traditional scalar chain of command (in which each subordinate reports to just one superior) must make way for a multiple command structure, in which a project manager reports to numerous superiors.

(2) Organizational Resource Sharing:

Key management should come to an agreement on how to share physical, financial, and human resources in order to do the tasks that have been given to them. This is because no manager in a matrix organisation has exclusive access of any resource; instead, he must share it with others.

(3) Mechanism for Resolving Resource Sharing Disagreements:

When two or more managers need the same resource at the same time, a conflict-resolution mechanism should be in place. If a conflict scenario goes ignored for a long time, it may be harmful to the units in charge of specific initiatives, as well as the organisation as a whole.