Yet all team members were constrained to listen to these issues being discussed until a decision was made, and were even expected to participate in the discussion and influence the choice. The project organization chart may be shown as follows: Advantages of Project Organisation: a. Organizations must communicate their vision, objectives and goal with the employees. The strong matrix structure has a lot of the characteristics of a projectized organization. This problem has led to the use of a manager of projects, or a super project manager in some organizations. His main function is to aid and advise the line executive as also to perform any other work assigned to him. He must assure that the task is realistically priced and technically feasible.
For example, top managers should ask themselves if all the business units need to be balanced by central functional departments. Severe groupitis The mistaken belief that matrix management is the same as group decision making. For generations managers lived with the happy fiction of dotted lines, indicating that a second reporting line was necessary if not formal. The project manager is the person who is responsible for facilitating the project. They are: i As the firm grows larger, line organisation becomes more ineffective. New York: McGraw-Hill Book Company, 1972, pp.
It is not uncommon for a large aerospace or construction project to have several thousand people working in a pure project organization. The project manager in a matrix organization has two very important interfaces — with top management and with functional management. Lack of wide coordination Time limit factor of the matrix structure creates problems in maintaining wide coordination among all the mechanisms of the organization. This type of structure is most suitable for organizations operating in a dynamic environment. Project management must realize that they get their job accomplished primarily through the process of negotiation, and that they should become negotiation experts. But managers should expect difficulties to arise if they believe group decision making to be the essence of matrix behavior. For this successful outcome three things are necessary.
This sort of overlapping in specialization can create a needless redundancy in an organization, increasing its costs as managers and employees from different departments undertake tasks that could be accomplished by one department. Thinking there is no time for organizational toys and tinkering, the top level managers take command in an almost, but not quite, forgotten way, and ram their directives down the line. He graduated from Centenary College of Louisiana with a Bachelor of the Arts in history and English literature. It may be a considerable shock to functional management to find that their priorities must change, and that the project comes first. How to overcome disadvantages of the Matrix Organizational Structure? They should adopt the functional organization structure instead. The matrix is thus a multi-dimensional structure that tries to maximize the strengths and minimize the weaknesses of both the project and the functional structures 25. If you have something to share, please do so through the comments section.
Product or business group managers are incharge of one or more products and are authorized to prepare product strategies or business group strategies and call on the various functional managers for the necessary resources. The list of well-known companies that are using some form of a matrix is becoming long and impressive. The Matrix Organization Structure can deliver this, provided people have the skills to make the matrix work. If the the project established, a functional area play a dominant role, functional areas on completion of the project, senior managers will be responsible for project coordination. As project integrator, he has the overriding responsibility for evaluating every key project decision to determine how it interfaces with the other project tasks, and with his schedule and budget. The matrix developed as a natural evolution of organizational structures in answer to a very definite real-world need.
The matrix evolved to fill a need for an organization capable of dealing with great project size and complexity. Once the line between individual and group matters was drawn according to who had information really relevant to a decision, meetings became fewer and smaller and work proceeded on a more economical and responsive basis. New York: McGraw-Hill Book Company, 1975, pp. Divisional Organisational Structure: In this type of structure, the organisation can have different basis on which departments are formed. Seeing that one advantage of the conventional single chain of command is that two disagreeing peers can go to their shared boss for a resolution, managers unfamiliar with the matrix worry about this problem almost more than any other.
However, solid lines normally connect managers with their direct subordinates, the man above being the boss. This contributes valuable information that leads to employee satisfaction and increased motivation. Example In the 1970s, Philips, a Dutch multinational electronics company, set up matrix management with its managers reporting to both a geographical manager and a product division manager. A good working relationship with functional management will ensure that most problems are resolved at their level and will not have to go to top management. In a line organisation authority follows the chain of command. Matrix organizations are adaptable to changes in the business environment, but the drawback is that dual management can cause divisional and functional power struggles.
Full and free communication is essential among those working on the project. Among these alternatives are various forms of the matrix. When this occurs, organization charts begin to resemble blueprints for a complex electronic machine, relationships become unnecessarily complex, and the matrix form may become more of a burden than it is worth. Disadvantages of Functional Organisation: a. They interact with each other and develop mutual and close relation with each other.