Name: Ameya Dalvi Roll No: 18 GR No: 1710610

Name: Ameya Dalvi

Gr No: 1710610
Roll No:18
Div.: Q

IPE Home Assignment

A Blog on
Matrix Organizational Structures
Introduction
It’s recommended to have an organizational structure in place to accurately define the activities in a
project. Projects have many activities, from task allocation to budgeting and everything in-between.
Therefore, that organizational structure shouldn’t be rigid, but efficient, flexible and possibly
innovative.

Every organization is structured in some way, and that structure is determined by the organization’s
objectives. The way you structure an organization is going to offer a standard for operating
procedures and routines. It will also determine who participates in what, and what project tools are
best for the job at hand.

Matrix organizational structure is often used in project management because it speaks to both the
product of the project and the function of the management producing it.

What Is Matrix Organizational Structure?

The matrix organizational structure is a combination
of two or more types of organizational structures. The
matrix organization is the structure uniting these
other organizational structures to give them balance.
Usually, there are two chains of command, where
project team members have two bosses or managers.

Often, one manager handles functional activities and

the other is a more traditional project manager. These
roles are fluid and not fixed, as the balance of power
between these two kinds of managers isn’t
organizationally defined.

It will employ the best of both structures and management styles to strengthen strengths, and make
up for weaknesses. This way, if an organization is working on producing two products or services at
the same time, they can organize both and use that duality to their advantage through the matrix
organizational structure.
Name: Ameya Dalvi Roll No: 18 GR No: 1710610

Origins of the Matrix Organizational Structure

The matrix organizational structure came about as a business response to the rise of large-scale
projects. They needed fast-track technology applications and required the ability to process great
amounts of data in an efficient manner. Project organization was needed to respond quickly to
interdisciplinary needs, without upsetting the functional organizational structures already in place.

Matrix organizational structures were first developed in the aerospace industry in the U.S. as
projects grew in complexity during the mid-century. Until that point, they had been using a single
hierarchical organization, which was fine when there was only one very large project.

However, with more and more projects having a variety of sizes and complexities, there was a need
for expanding beyond one discipline. So, as time went on, the use of one discipline to structure a
project become increasingly rare. But there remained a need for a single source of information and
responsibility for each project. Therefore, instead of creating many autonomous projects, a matrix of
projects was developed.

Pros and Cons of a Matrix Organizational Structure

A matrix organizational structure is not a one-size-fits-all solution. There are advantages and
disadvantages that need to be understood to know if it’s the right one for the organization.

Pros
1. One of the biggest pros of using a matrix organizational structure is that it allows the sharing of
highly skilled resources between functional units and projects. Communications are open, which
helps knowledge move throughout the organization with less obstruction. Because the matrix
organizational structure fosters better communications, it makes the normal boundaries
between groups more porous, which allows for more collaboration and an integrated, more
dynamic organization.
2. This structure can serve as a great boon for employees who are looking to widen their
experience and skill sets. They can be part of many different aspects of various projects. It puts
them in an environment that facilitates learning and gives them an opportunity to grow
professionally.
Name: Ameya Dalvi Roll No: 18 GR No: 1710610

3. Plus, the functional departments have highly skilled people, and those people are available to
help the project team if needed. This creates a pool of valuable resources that can be dipped
into and provides more flexibility to resolve issues without having to source new resources.
4. Furthermore, efficiencies are enhanced, and teams remain loyal because the structure provides
a more stable environment where job security is strengthened. People work harder and have
more buy-in to projects when they feel the rug isn’t going to get pulled out from under them.

Cons
1. There can be some confusion when a team member is subject to two managers. That can also
create unnecessary conflict. This is especially true if both managers have equal authority.
2. Then there is the functional manager and project manager. There can be some sparks flying
between these two managers in terms of what they believe to be the authority in the
organization. That confusion can show up with team members, too, if their roles and
responsibilities aren’t clearly defined. And that confusion can lead to conflict if resources are
hard to come by and competing managers are fighting for them.
3. There are a lot of managers in a matrix organizational structure, which is not to everyone’s
liking. And there can be a financial downside to that too. Having more people in managerial
positions is going to have an impact on the organization’s bottom line.
4. Team members can feel the strain of working in a matrix organizational structure, in that their
workload can be heavy. Often, they’re tasked with their regular assignments and then additional
work, which can lead to burnout or some tasks being ignored.
5. Finally, there’s the overall expense of the matrix organizational structure. This goes beyond
having multiple managers but also the added expense of keeping on resources that might not be
used all the time.

Not that some of these disadvantages can’t be overcome. They just require being cognizant of the
stress points and working more cooperatively towards relieving them.

Conclusion
The matrix organizational structure is an answer to the problem of managing large and complex
projects. When working on a large project, a highly hierarchical structure can be an obstacle in the
path of moving that process forward successfully.

Instead of trying to find a workaround to a situation that might not have a viable solution, a matrix
organization structure provides a new system that can more properly address the complexities of
large projects.

The problem of having the function and skills fragmented in an organization makes it more difficult
to handle large projects successfully. It’s harder with this type of top-down organizational structure
to have a holistic view. The perspective at the top is distorted, while a matrix organizational
structure can see a problem from a closer standpoint and have varied approaches of solving it.

The matrix organizational structure is more catholic in that it acts as if there is not a single best way
to organize a project. It sees alternatives rather than one established way forward.

References
1. http://www.economicsdiscussion.net/management/matrix-organisational-structure/31591
2. https://pmstudycircle.com/2012/08/what-is-a-matrix-organization-structure/
3. https://en.wikipedia.org/wiki/Matrix_management