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Matrix management is a type of management used by some organizations.

Under matrix management, all people who do one type of work are in a pool. For example, all engineers may be in one engineering department and report to an engineering manager. These same engineers may be assigned to different projects and report to a project manager while working on that project. Therefore, each engineer may have to work under several managers to get his or her job done.

Proponents of matrix management suggest that there are two advantages to matrix management. First, it allows team members to share information more readily across task boundaries. Second, it allows for specialization that can increase depth of knowledge and allow professional development and career progression to be managed.

The disadvantage of matrix management is that employees can become confused due to conflicting loyalties. A properly managed cooperative environment, however, can neutralize these disadvantages. In order for the system to work, all parties must be willing to talk to each other to learn what their different objectives and goals are.

Matrix management can put some difficulty on the project managers because they must work closely with other managers and workers in order to complete the project. The functional managers may have different goals, objectives, and priorities than the project managers, and these would have to be addressed in order to get the job done.

One advantage of matrix management is that it is easier for a manager to loan an employee to another manager without making the change permanent. It is therefore easier to accomplish work objectives in an environment when task loads are shifting rapidly between departments.

Contents 1 The matrix 2 Visual representation 3 References 4 Links

Most organizations fall somewhere between the fully functional and fully projectized organizational structure. These are matrix organizations. Three points along the organizational continuum have been defined. They are:

Weak/Functional Matrix – A project manager (often called a project administrator under this type of organization) with only limited authority is assigned to oversee the cross-functional aspects of the project. The functional managers maintain control over their resources and project areas.

This matrix still retains most of the problems associated with a functional organization. The project administrator’s role is to attempt to alleviate communication issues between functional managers and track overall project progress.

Balanced Functional Matrix – A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers.

Proponents of this structure believe it strikes the correct balance, bringing forth the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing of power is a very delicate proposition. This is also the most complex organizational structure to maintain.

Strong/Project Matrix – A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources on an as-needed basis.

Because project resources are assigned as necessary there can be conflicts between the project manager and the functional manager over resource assignment. The functional manager has to staff multiple projects with the same experts.

Representing matrix organizations visually has challenged managers ever since the matrix management structure was invented. Most organizations use dotted lines to represent secondary relationships between people, and software packages, such as Visio and PowerPoint support this approach. Until recently, ERP and HRMS systems did not support matrix reporting. Late releases of SAP support matrix reporting. Oracle eBusiness Suite can also be customized to store matrix information. Most dedicated org-chart software vendors do not support matrix reporting; the one exception is HumanConcepts.

• "A Guide to the Project Management Body of Knowledge (PMBOK®)", Project Management Institute, ISBN 1-880410-23-0
• "Matrix organization designs — How to combine functional and project forms", Jay R. Galbraith, Business Horizons 17(1):29-40 (February 1971)
• "Organizing for Product Development Projects", E.W. Larson and D.H. Gobeli, J Prod Innov Manag, 1988;5:180-190

SAP, ERP vendor
HumanConcepts, makers of OrgPlus software