Projects in a

Matrixed
Organization
Projects in a Matrixed Organization

Prepared for:
Professor Dr. Abul Kashem
Course Instructor
Project Management

Prepared by:
Zarin Tasnim Hoque (19102051)

BBA Program
University of Asia Pacific
5 November 2022
 Projects in a Matrixed Organization

The matrix organizational structure is a combination of two or more types of organizational

structures. Multi-line management structures are called matrix organizations (Meredith et al.,
2019). In essence, it means that there are multiple supervisors for each employee. In this system,
workers are under the command of two supervisors. A two-tiered management structure is in place.
An organization with a matrix structure operates simultaneously with two types of structures. As
the structure that balances all of these organizational structures, the matrix organization is intended
to unite them.

Functional managers exercise authority vertically downwards, whereas project managers exercise
influence horizontally. It is called a matrix organization structure because these authorities flow
downward and sideways. There is often a functional manager associated with the project and a
traditional project manager associated with the functional activities. The power balance between
these two types of managers is not clearly defined within the organization, so these roles are fluid
and not fixed. Organizations with a wide range of products and services commonly use this
structure.

Figure: Matrix Organization (Topaz, 2020)

Classification of Matrix

According to the amount of authority that project managers have over their teams, a matrix
environment is classified as weak, strong, or balanced:

Weak matrix: It is the functional managers who provide most of the direction to project team
members. The role of a project manager is generally more of a coordination role than one of
management, and they have limited direct authority over the members of their team (Puscasu,
2022).

Strong matrix: A company with a matrix structure selects its project managers from a group of
professionals who are exclusively involved in managing projects. These individuals are never
entrusted with the responsibility of serving on a company's team. There is often a manager of
project managers who supervises all of these project managers (Scarlot, 2021). Along with
overseeing and guiding projects, these project managers are able to participate in the performance
evaluations of team members.

Balanced matrix: There are both weak and strong environments present in this type of matrix
environment. Rather than based on their job descriptions, team members or project leaders are
assigned based on the needs of the project. Some administrative authority may be granted to the
project manager over team members, but the role he or she plays is primarily that of guiding,
coordinating, and facilitating the project.

Advantages

The following benefits are associated with matrix environments:

 Clearly defined project objectives: The project office will not only make the objectives
of the project clear but also align them with the functional organization's objectives as well.
 Integration of projects: Subsystems and work packages can be integrated across
functional and departmental lines with a clear and workable mechanism. There is no
difficulty in coordinating across functional lines.
 Resource Efficiency: Utilizing scarce company resources efficiently is the key to
maximizing their effectiveness. In terms of manpower, this method is most effective owing
to the flexibility of part-time staff or sharing between multiple projects (Topaz, 2020). By
 sharing materials, equipment, and machinery between or among projects, it is most
efficient to use these resources. A company can establish corporate priorities or allocate
scarce resources based on negotiations between functional and project management.
Management of a matrix is therefore less expensive than managing a pure project
organization in this manner.
 The flow of information: With both horizontal and vertical flow provisions, information
dissemination should be very effective. A horizontal flow of information between
functional units facilitates the flow of project information. Project-to-project and from
management to management, detailed disciplinary information flows vertically. Projects
do not keep information for their own use that can be useful to others.
 Retaining discipline teams: As projects come and go, functional experts and specialists
remain in close contact. When a project is completed, knowledge and technology are not
lost (Meredith et al., 2019). The exchange of ideas and information between specialists will
be better if they collaborate with other specialists in the same discipline. The working
relationship between functional specialists in a team creates a synergistic effect. This leads
to increased innovation and productivity even though different functional specialists may
work on different projects.
 An atmosphere of high morale: A successful project resulting in visible achievements
leads to fewer morale problems since employees respond to successful projects that build
their morale. No matter what the achievement is, whether it is a ballistic missile, an aircraft,
a power plant or a new soap, the achievement will become a part of history.
 Project Manager Development: Future project managers are well-served by matrix
training because it provides a multidisciplinary environment that can easily identify
promising candidates.
 The shutdown of a project: Matrix organizations do not experience the same trauma and
pain associated with project termination as pure project-oriented organizations. The
number of people working in a pure project organization involved in a large aerospace or
construction project is not uncommon. Because only a few employees can be relocated,
large layoffs are almost unavoidable (Scarlot, 2021). There is almost no way around large
layoffs unless another project is under construction. There are generally fewer people
involved in matrix projects compared to traditional projects. Furthermore, the relocation
 will affect a significant of people across a wide variety of departments within a large
functional organization.

Disadvantages

Even though there are some drawbacks and problems with matrix organizations, they should not
be regarded as insurmountable. The first step in overcoming problems is to identify what they may
be. A matrix organization has the following disadvantages:

 Managing two bosses: Having two bosses is one of the major disadvantages of the project.
In any conflict situation, the man in the middle can be easily created. Furthermore, project
personnel can oppose each other as bosses, resulting in further conflict.
 Observation and control difficulties: Keeping a large number of people informed is a
complex task resulting from the involvement of a large number of managers and personnel.
This issue has been largely managed by computer technologies, but it is still primarily a
human issue (Topaz, 2020).
 Information flow that is complex: Due to the sheer number of people involved and the
number of departments involved, this is a problem. If any major decisions are to be made
in their respective areas, project and functional managers must reach out to each other.
 Difficulty in fast reactions: Due to the fact that there are so many people to consult,
project managers sometimes have trouble achieving quick reaction times. Because project
managers do not typically have powerful vested interests, it is necessary to negotiate
considerable authority for them. In most cases, it is the project manager's responsibility to
prevent this problem, however the management system can make it impossible for him or
her to consult functional and top management before making a decision (Puscasu, 2022).
It is unlikely that the problem will arise if the matrix is working.
 Disputed guidance: There is a higher likelihood of conflicting instructions and guidance
to occur in organizations that are complex.
 Priorities: When an organization has a large number of projects, its priority setting and
resource allocation can become problematic. The highest priority will naturally be assigned
to each project manager's project. Functional managers will similarly think that allocating
resources and prioritizing priorities within their departments is their responsibility. Due to
this, project priorities are often decided at a high level, as is the allocation of resources.
  Goals of management: The struggle between project and functional management is
constant, despite being often unseen. Time and cost constraints should not be
overemphasized by a highly skilled project manager, while technical excellence should not
be neglected by a functional manager (Meredith et al., 2019). Maintaining an appropriate
balance between project management goals and functional management goals is the
responsibility of top management.
 Conflict Potential: It is possible that there will be a conflict between the two project
managers since they are competing for resources. Power struggles may be one of the
primary manifestations of this conflict.
 Conflict's impact on management: The people who will be handling functional and
project management are especially significant because matrix organizations are prone to
conflict and stress. Stress can affect individuals in a wide variety of ways. Stress, anxiety,
and reduced job satisfaction can arise from conflict, especially in situations with two
bosses. The importance of ensuring prospective managers are able to deal well with conflict
should not be underestimated.

Role of matrix structure

 When dealing with large and complex projects, a matrix organizational structure is an
effective solution.
 The development of a large project can be hampered by a highly hierarchical structure.
 A matrix organization structure provides a new system that can properly address the
complexity of large projects, rather than trying to work around a problem that might not
have a viable solution (Puscasu, 2022).
 Large projects are more difficult to manage when an organization's function and skills are
fragmented. Having a holistic perspective is difficult when an organization operates from
the top down. In contrast to top-down organizational structures, matrix organizations can
see a problem from a closer vantage point and are capable of devising several approaches
to solving the problem.
 A matrix organization structure provides more flexibility in organizing a project than
relying on just one method. The idea is not to put all the emphasis on a single path forward
but to consider all viable options instead.
It is imperative for organizations to have organizational structures so that their businesses can be
coordinated effectively. For conflict to be avoided, it is crucial to define clearly the roles,
responsibilities, and reporting hierarchy. The benefits and limitations of an organizational structure
type should be considered before implementing it (Scarlot, 2021). It may be more beneficial to
implement a functional organizational structure for a small company than it would be to implement
a matrix organizational structure. A matrix organization structure will also be more beneficial if a
company has a large number of projects that are complex and large.
References

Meredith, J. R., Shafer, S. M., & Mantel, S. J. (2019). Project management a strategic managerial
approach. John Wiley and Son Australia, Ltd.

Puscasu, A. (2022, July 2). How to organize projects within a matrix organizational structure.
Ape. Retrieved November 5, 2022, from http://apepm.co.uk/matrix-organizational-structure/

Scarlot, B. (2021, March 4). Matrix organizational structure in Project Management.

projectcubicle. Retrieved November 5, 2022, from https://www.projectcubicle.com/matrix-
organizational-structure/

Topaz, A. R. (2020). Project in matrix organizational structure - A matrix organization is a

structure in which there is. StuDocu. Retrieved November 5, 2022, from
https://www.studocu.com/row/document/university-of-dhaka/project-management/project-in-
matrix-organizational-structure/5403936