Matrix organization

A matrix organisation is a structure that blends the functional and projectized structures. Employees belong to a functional department and are also assigned to one or more projects, so they report to two managers: the functional manager (for skills, standards, career) and the project manager (for project tasks and schedule).

            Manager
   -----------------------------
        Dev     QA     Design
Proj A  [x]     [x]     [x]  <- PM A
Proj B  [x]     [x]          <- PM B
Proj C          [x]     [x]  <- PM C

Types (by project manager's power)

• Weak matrix: functional manager holds the power; the project manager acts like a coordinator.
• Balanced matrix: power is shared between the two.
• Strong matrix: project manager has most of the authority and a full-time role, close to projectized.

Advantages

• Efficient sharing of scarce experts across projects.
• Project gets visible management attention and clear objectives.
• Staff keep a "home" department and career path after the project.
• Better communication across functions.
• Flexible response to changing demand.

Disadvantages

• Dual reporting confuses staff and leads to conflict between managers.
• Competition for resources among projects.
• Higher administration cost and need for policies.
• Slow decisions if authority is unclear.
• Team members may be overloaded.

Managing a matrix

Define authority and responsibility (RACI), agree on resource allocation early, communicate regularly, and have clear escalation paths.

Example: An IT company has a pool of Java developers (functional) who are assigned to different client projects. For each project the project manager sets tasks and schedules, while the development head appraises and trains the staff.