Matrix Organization Structure in Project Management
1) List 5 Advantages and 5 Disadvantages of Matrix Project Organization.
2) Discuss how your management style might differ in a matrixed organization from the management style you might use in a project-oriented organization.
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A matrix organization structure is primarily characterized by a dual rather than the traditional single chain of command. The identifying feature of the matrix organization is that the two chains of command are divided between the functional and project, product or client lines. The advantages of the matrix organization include:
Facilitates efficient resource planning through sharing of resources between functional and project units.
Fosters better cross-functional communication attributed to an effective flow of information between the different levels of management.
Promotes the development of project managers and enables employees to widen their experience and skill sets.
Facilitates the retention of functional experts and specialists between projects. Therefore, the continued collaboration results in increased innovation and productive output, regardless of the project.
Increases team morale as team members continue to work with fellow specialists in the project structure. Further, the nature of the matrix organization assures one of a career progression up the functional ladder, which is a strong source of one’s motivation.
Some disadvantages of the matrix organization structure include:
The dual chain of command easily leads to confusion as team members are left in the middle. This occurs more so when the managers roles and responsibilities are not clearly defined.
The matrix organization structure is inherently more complex than the traditional function or project organization.
The matrix organization structure encourages power struggles between the managers. As the managers seek power balance, there is a constant tendency towards imbalance, as each party tries to gain an advantage over the other.
Constant conflicts arising from the dual chain of command can produce stress, anxiety, and reduced members’ morale.
The dual chain of command is further associated with increased overhead costs attributed to the double management structure.
A common management structure in a project-oriented organization is the traditional projectized structure where project managers have control over the projects. In this structure, a project manager has ultimate control of the resources within a project. The matrix structure differs from the projectized structure in terms of management and resources coordination. In a projectized structure, the resources are re-assigned to other projects. On the other hand project team members are retained within the organization in a matrix structure.
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