Matrix Organization
The matrix organization structure is a combination of two or more types of
organizational structures, such as the Projectized organizational structure
and the functional organizational structure. This combination can help
organizations improve efficiency, readiness, and market adaptation. This
type of structure is most suitable for organizations operating in a dynamic
environment; they often can respond faster to market or customer demand
while decreasing the lead time to produce a new product.
The authority of a functional manager moves vertically downwards, and the
authority of the project manager moves sideways. Since these authorities
flow downward and sideways, this structure is called the matrix organization
structure. In a matrix organization structure, employees may report to many
managers, and some from one section may report to one boss while the rest
report to a different boss.
When you receive project management training, you’ll learn more details
about the three types of matrix organizations, and how the project
manager’s power differs depending on the type. Below we provide a
summary.
1. Strong Matrix
In a strong matrix structure, the project manager enjoys more power
than the functional manager. For example, the project manager has
a say in the allocation of resources.
2. Weak Matrix
In a weak matrix structure, a project manager works like a project
coordinator or project expeditor. A project coordinator has some say
in the allocation of resources, while a project expeditor serves only
as a point of communication between the customer and team.
Overall, in a weak matrix, the functional manager reigns supreme.
3. Balanced Matrix
In a balanced matrix, both have equal power. Resources working on
a project can face communication difficulties due to the lack of
clarity on whom to report.