Matrix management

Matrix management is a type of organisational management in which people with similar skills are pooled for work assignments. For example, all engineers may be in one engineering department and report to an engineering manager, but 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 their job done.

Contents 1 The matrix 2 Controversy 3 Visual representation 4 Clarification 5 References

The matrix

Some 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 (Galbraith, 1971):

• 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. The project administrator’s role is to enhance communication between functional managers and track overall project progress, making them more of an expediter or coordinator.
• Balanced 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.

Controversy

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.^{[citation needed]}

The disadvantage of matrix management is that employees can become confused due to conflicting loyalties. The belief is that a properly managed cooperative environment can neutralize these disadvantages.^{[citation needed]}

Opponents to matrix management believe that it is an outdated method to organize a company.^{[citation needed]} The belief in the 70's and 80's was that a matrix organization would be the best way to manage project complexity. This has been proven untrue over the years by the failures of companies such as IBM, HP, and AT&T. A matrix organization in itself is complex, breaks down over time, and hinders the ability of managers to effectively lead. citation

Visual representation

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, Enterprise resource planning (ERP) and Human resource management systems (HRMS) software did not support matrix reporting. Late releases of SAP software support matrix reporting, and Oracle eBusiness Suite can also be customized to store matrix information.

Clarification

A tight matrix has nothing to do with matrix management. It simply refers to locating the offices for the project team in the same room. Because it sounds similar to the other forms of matrix management, it is often used in conjunction with functional, projectized, and matrix.

References

1. "A Guide to the Project Management Body of Knowledge (PMBOK)", Project Management Institute, ISBN 1-880410-23-0
2. "Mentoring Soft Boundaries for Management", R J Shepherd, MIDAS MDF 2007;2:79-89
3. Galbraith, J.R. (1971). Matrix Organization Designs: How to combine functional and project forms. Business Horizons, February, 1971, 29-40.

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