Matrix Organization

This is probably the most common type of project organization, since it utilizes an existing functional organization to provide the human resources without disrupting the day-to-day operation of the department.

The personnel allocated to a particular project are responsible to a project manager for meeting the three basic project criteria: time, cost and quality. The departmental manager is, however, still responsible for their 'pay and rations' and their compliance with the department's standards and procedures, including technical competence and conformity to company quality standards. The members of this project team will still be working at their desks in their department, but will be booking their time to the project. Where the project does not warrant a full-time contribution, only those hours actually expended on the project will be allocated to it.

The advantages of a matrix organization are:

1 Resources are employed efficiently, since staff can switch to different projects if held up on any one of them;

2 The expertise built up by the department is utilized and the latest state-of-the-art techniques are immediately incorporated;

3 Special facilities do not have to be provided and disrupting staff movements are avoided;

4 The career prospects of team members are left intact;

5 The organization can respond quickly to changes of scope;

6 The project manager does not have to concern himself with staff problems.

The disadvantages are:

1 There may be a conflict of priorities between different projects;

2 There may be split loyalties between the project manager and the departmental manager due to the dual reporting requirements;

3 Communications between team members can be affected if the locations of the departments are far apart;

4 Executive management may have to spend more time to ensure a fair balance of power between the project manager and the department manager.

All the above problems can, however, be resolved if there is a good working relationship between the project manager and the department heads. At times both sides may have to compromise in the interests of the organization as a whole.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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