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EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
Matrix Organization
Euro MPM
He Wang
EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
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Definition and
Characteristics
• The matrix organization is an attempt to combine
the advantages of the pure functional structure and
the product organizational structure.
• This form is identically suited for companies such as
construction, that are “ project-driven”.
• In Matrix organization, each project manager
reports directly to the vice president and the general
manager. The power and authority used by the
project manager come directly from the general
manager.
EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
3
• Information sharing is in an organization and
several people may be required for the same piece
of work
• The project manager has the total responsibility and
accountability for the success of the project.
• The functional departments have functional
responsibility to maintain technical excellence on
the project.
• Each functional unit is headed by a department
manager whose prime responsibility is to ensure
that a unified technical base is maintained and that
all available information can be exchanged for each
project.
EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
4
The basis for the matrix organization is an endeavor to
create synergism through shared responsibility
between project and functional management .
Other advantages:
because key people can be shared, the project cost is
minimized;
conflicts are minimal, and those requiring hierarchical
referrals are more easily resolved;
there is a better balance between time, cost and
performance;
authority and responsibility are shared;
stress is distributed among the team.
EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
5
• The project manager has most power, resources
and control over the work.
• Project managers in a strong matrix often have a
separate reporting line to a project office or project
management structure.
EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
6
Horizontal matrix over the strong matrix-the
balanced matrix
The balanced matrix is
where the power is shared
more equally between the
vertical and horizontal
legs of the matrix with
respective responsibilities
for people and resources
carefully defined and
reasonably balanced
•Solid line or dotted line reporting can be used
to add further nuance. In general the solid line is
the stronger relationship, the dotted line the
weaker. Most organizations use 2 solid line
reporting relationships to represent a balanced
matrix.
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EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
8
EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
EuroMPM
University of Applied Sciences
And Arts – Dortmund - Germany
9
Conclusion
• Matrix organizations are a blend of functional and
projectized characteristics.
• Weak matrices main many of the characteristics of
a functional organization and the project manager
role is more that of a coordinator or expediter than
that of a manager.
• Strong matrices have many of the characteristics of
the projectized organization, and can have full-time
project managers with considerable authority and
full-time project administrative staff.
• The balanced matrix organization recognizes the
need for a project manager, it does not provide the
project manager with the full authority over the
project and project funding.