Matrix Organization Structure

Group 22

NIDHIN DAS M MNAVANEETH.C.VNASHEED HASSAN.PMOHAMED ABDU RAHMAN MOHAMMED AJMAL.MMOHAMMED FASIL.K

Definition

A matrix organization is defined as an organization where people have to report to more than one boss.

Matrix Organisation was introduced in USA in the early 1960's. It was used to solve management problems in the Aerospace industry.

The design get popularity in 1970s and 80s when big companies like NASA,IBM , HP , Nestle and CITI Bank used this structure

Matrix Organisation is a combination of two or more organisation structures. For example, Functional Organisation and Project Organisation.

The organisation is divided into different functions, e.g. Purchase, Production, R & D, etc. Each function has a Functional (Departmental) Manager, e.g. Purchase Manager, Production Manager, etc.

The organisation is also divided on the basis of projects e.g. Project A, Project B, etc. Each project has a Project Manager e.g. Project A Manager, Project B Manager, etc.

The employee has to work under two authorities (bosses). The authority of the Functional Manager flows downwards while the authority of the Project Manager flows across (side wards). So, the authority flows downwards and across. Therefore, it is called "Matrix Organisation".

7

President

Vice President,

Engineering

Vice President,Finance

Vice President, Production

VicePresident.Marketing

Project Manager,

A

Project Manager,

B

Project Manager,

C

Project Manager,

D

Functional Structure

Subordinate reports to

both Vice President of marketing &

to project

Manager for B

Project structure

Features of Matrix Organisation

Hybrid Structure

Command

Specialisation

Suitability

Advantages of Matrix Organisation

Sound Decisions Development of SkillsTop Management can concentrate on Strategic

Planning Responds to Changes in Environment SpecialisationOptimum Utilisation of Resources

Limitations of Matrix Organisation

Conflict between PM and FM Confusion on employeesExpensive Increase in Work Load Difficulty of BalanceShifting of Responsibility

TYPES OF MATRIX STRUCTURE

STRONG MATRIX STRUCTURE

BALANCED MATRIX STRUCTURE

WEAK MATRIX STRUCTURE

Strong matrix structure

Power and authority lies with project manager

Project manager have a full time role

Project manager have administrative staff under him

Project manager control the project budget

Functional manager have limited role

Balanced matrix structure

Power and authority are shared between both the manager

Project manager functional manager have a full time role

Project manager have a administrative staff under him

Both manager controls the project

Weak matrix structure

Project manager have a limited power and authority

Project manager have a part time role

No administrative staff will report to him

Project manager have the role of coordinator

Functional manager controls the project