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 arrangements
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 consuming.
- 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.