Matrix organization is a group or team that is
formed on temporary basis for accomplishment of
a given project. Team members are from various
functional departments and they work under
project manager appointed. As business
environment changes very rapidly and the
organization must take some action on project
basis that may be adding a activities which are
required and deleting the unwanted one. The
project can be managed in two forms i.e. Pure
project organization Matrix Organization Pure
project organization is required for small
number of projects for long duration and
separate division can be created for each
project. Matrix organization is suitable for
large number of smaller projects and activities
of projects can be accomplished by temporary
Design of matrix organization
In matrix organization a project manger is
appointed to coordinate the activities of a
project. Personnel are drawn from the various
functional departments. Upon completion of
project these people may return to their
original departments. Thus the functional staff
has two bosses his administrative head and
project head. They have to coordinate the
instructions from two bosses. In this case
superior reports in direct line to up but does
not have complete line of command below.
· Matrix structure focuses on a single permitting
better control and planning to complete the
project in a specified time period.
· Development of persons by widening their scope
and they can contribute maximum to organization
· It improves motivation as people can focus on a
particular project but in traditional structure
it can not happen.
· It also improves communication by discarding
hierarchical system which is more time
It violates the principle of unity of command as
there are two superiors a person has to work
for. There may be rise of more conflicts.
Informal relations are formed during matrix
organization functioning and it may increase
complexicity in organizational relationship.
Problems regarding appraisal may occur as
employee works for two departments at a time.