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Matrix Management

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Matrix Management is an organizational structure in which some individuals report to more than one supervisor or leader, relationships described as solid line or dotted line reporting. More broadly, it may also describe the management of cross-functional, cross-business groups and other work models that do not maintain strict vertical business units or silos grouped by function and geography. Matrix management, developed in U.S. aerospace in the 1950s, achieved wider adoption in the 1970s.[1]

Matrix management is a technique for managing an organisation through dual-reporting relationships, as opposed to a more traditional management reporting structure. It combines functional and product departments in a dual authority system. In its simplest form, a matrix configuration may be known as a cross-functional work team, which brings together individuals, who report to different parts of the company in order to complete a particular project or task (Malonis, 2000).



Origins of the Matrix Management Structure[2]

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.


The Matrix Organization[3]

It has been recognized that the matrix organizational structure has applications far beyond that of project (program or product) management. However, it's most highly developed application is that of project management.

The term “matrix project organization” refers to a multidisciplinary team whose members are drawn from various line or functional units of the hierarchical organization. The organization so developed is temporary in nature, since it is built around the project or specific task to be done rather than on organizational functions. The matrix is thus built up as a team of personnel drawn from both the project and the functional or disciplinary organizations. In other words a project organization is superimposed on the conventional functional hierarchical organization.


Matrix Organization
source: Project Management Institute


The matrix in its simplest form is shown diagrammatically in the figure above. It represents a general organizational structure. The matrix is a multi-dimensional structure that tries to maximize the strengths and minimize the weaknesses of both the project and the functional structures


Applying Matrix Management[4]

Where Matrix Management Makes Sense
Matrix management is ideal for sharing talent and skills across departments. It's an especially handy system when developing new products—it allows individuals from different functions within an organization to work under a project manager to create something new and unique. This gives the team the ability to draw upon diverse skill sets from multiple disciplines, strengthening the project team. It's a great way to cut costs as well—a matrix approach to projects is typically less expensive than establishing dedicated project teams. The diversity of the team members makes the team superior to many purely functional teams.

Where Matrix Management Is Not Ideal
While there are many potential benefits to this flexible style of team structure, there are some circumstances where it is not ideal. These include:

  • A project predicted to be long term. A dedicated team with a permanent assignment may be optimal
  • Situations in which one employee's skills are mission-critical to a particular function. Sharing this individual may reduce the effectiveness of that function


Types of Matrix Management[5]

Matrix management refers to the organizational structure used by companies to distribute employee responsibilities and have them report to multiple managers. The two main chains of command within matrix management are the project manager and the functional manager. Because of the various matrix management styles, it’s important to understand what they are trying to determine if this form of management will be beneficial for you and your company. There are three types of matrix management styles:

  • Weak Matrix: In these matrix systems, the project manager has a limited amount of authority. This could mean they have no one reporting to them. In a weak matrix, the power shifts to the functional manager, and project managers take on more of a project coordinator role.
  • Balanced Matrix: In a balanced matrix, project managers and functional managers have equal authority and power. Project managers determine the skills needed for a project, whereas functional managers assign employees to meet those needs. Team members are required to keep both managers informed on their progress and priorities.
  • Strong Matrix: Under a strong matrix, project managers have the most authority and team members are required to report to them.


The Benefits of the Matrix Management Structure[6]

Any organization planning to implement change can benefit from the matrix management structure for the following reasons.

  • Project teams are set up on a temporary and finite basis for the fulfilment of customers’ needs: Once a project is completed team members are reassigned to other work. Knowledge and expertise is retained by the organization.
  • Project teams are highly suited to people working on a common task or project such as the introduction of new business processes and the associated information systems.
  • Project teams are dynamic and innovative structures that can view problems in a different way because specialists are brought together in a new environment: Individuals are chosen according to the needs of the project.
  • Project managers are directly responsible for completing the project scope within a specific time-scale and budget: In uncertain times, the project manager will need strong leadership skills to make sure the organization pulls in the same direction. Empowerment, through decision-making responsibility, makes it easier for the project manager to accept and make a success of the project.
  1. Definition - What Does Matrix Management Mean? Wikipedia
  2. Origins of the Matrix Organizational Structure Project Manager
  3. The Matrix Organization PMI.org
  4. Applying Matrix Management the balance
  5. Types of Matrix Management Indeed
  6. The Benefits of the Matrix Management Structure Leadership Thoughts