Unit 6 Types of Project Organizations
Matrix Management
According to Richard E. Anderson, the matrix approach to corporate organizations is making s
strong back in 1990s. In the 1970s, matrix management was in vogue. Dow Corning’s matrix
organization was championed by its chairman, William C. Cogin, in a classic Harvard Business
Review article in 1974. Companies such as GE, Xerox, Texas Instruments, TRW, Digital
Equipment Corporation, and Citibank employed the structure. After a few years, however, the
matrix organization faded from view, and numerous critics of this structure began to emerge.
Now it appears as though the structure, with a few modifications, is becoming popular again.
Recent studies show that team member often favor the matrix management approach over more
traditional approaches; they report that it leads to more successful relationships and projects. In
addition, Anderson stresses that matrix organizational structures can aid decentralization,
employee empowerment, and customer initiatives and help deliver results more effectively.
The Figures 0f Functional Organization Structure
Acme Electronics
Products, Inc.
President
Human Resource
Vice president
Marketing
Vice president
Customer
Service
Manager
Finance & Administration
Vice president
Engineering
Vice president
Manufacturing
Vice president
Domestic International System Electronics Mechanic Fabrication Assembly
Sales
Sales Engineering Engineering Engineering Manager Manager
Manager Manager Manager Manager Manager
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Testing
Manager
Procurement
Vice president
Shipping Purchasing Receiving &
Manager Manager Inspection
Manager
The Description of Functional Organization Structure
1.Advantages:
 A functional-type organization reduces duplication and overlap of activities.
 It provides the benefits associated with specialization and functional excellence.
2.Disadvantages:
 Functional-type organizations can be insular with each component concerned about only its
own performance.

Teamwork is not emphasized.
 Decisions may be parochial rather than in the best interests of the overall project.
 The hierarchical structure causes communication, problem resolution, and decision making to
be slow.
 There is a lack of customer focus.
 There is a stronger allegiance to the function than to the project or the customer.
The Figure of Project Organization Structure
Trabsit
Project, Inc.
President
Marketing
Vice President
Human Resource
Vice president
Finance &
Administration
Vice President
Legal
Vice President
Project A
Project Manager
Project B
Project Manager
Manufacturing
Manager
Procurement
Manager
Engineering
Manager
Subcontractor
Engineering
Manager
Consultant
Manufacturing
Manager
Procurement
Manager
The Description of Project Organization Structure
1.Advantages:
 The project team has full control over the resources, including authority over how the work
gets done and by whom.
 The project organization is highly responsive to the customer.
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2.Disadvantages:
 This structure can be cost-inefficient because of underutilization of resources.
 When things are slow, individuals have a tendency to stretch out their work to fill up the time
available or it they do not have any tasks to do for temporary periods, their unapplied time is
still a cost to the company.
 Potential for duplication of activities on several concurrent projects.
 There is a low level of knowledge transfer among projects.
 Individuals are dedicated to working on one project.
 They do not have a functional “home”.
 At the end of a project, people may be laid off if there is not a new project to which they can
be assigned leading to team members experiencing high anxiety about reassignment.
The Figure of Matrix Organization Structure
System Inc.
President
Warketing
VIce president
Finance
Vice president
Human Resource
Vice president
Project
Vice president
Engineering
Vice president
Manufacturing
Vice president
Field Serevice
Vice president
Project
Manager
Project A
Manager
Project B
Manager
Project C
Manager
Project D
Manager
The Description of Matrix Organization Structure
1.Advantages:
 It allows efficient utilization of resources by having individuals from various functions
assigned to work on specific projects.
 Because they have a functional home, individuals can be moved among projects.
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 It provides a core of functional expertise that is available to all projects.
 Knowledge stays with the company, ready to be used on future projects.
 People experience greater learning and growth, and their knowledge and skills are transferred
from project to project.
 The matrix structure also facilitates information flow.
 Project team members can inform the project manager and the functional manager.
 The matrix organization is customer focused.
2.Disadvantages:
 Members of a project team in a matrix organization structure have a dual reporting
relationship, which can cause anxiety and conflict over work priorities.
 A company that uses a matrix organization structure must establish operating guidelines to
assure a proper balance of power between project managers and functional managers.
 Conflicts will arise between project managers and functional managers regarding priorities.
B. Matrix Organization Structure
A matrix organization is structured in two dimensions: project/product-line and functions. Project
managers take charge of business processes while functional managers care about the organization’s
managerial concern and update of technical knowledge. The matrix structure has combined the
advantages of both project and functional organizations, strengthened the relationship between lateral
departments and cast more attention on the entire output of the organization’s processes. In the 1960s,
matrix structures became a popular organizational framework for managing new product and service
development.[6] Many experts consider matrix to be synonymous with multi-project organization, yet
in practice this is by no means true.
Since the matrix structure operates through a two-dimensional system of command, each person in
the matrix has two bosses: functional manager and project manager. In an ideal situation, the person can
combine his or her technical skills with the project tasks but in practice it is usually the opposite case.
Both project and functional managers prefer to consider questions at their own standpoint. And it is
likely that an employee may receive two totally different commands from functional and project
managers at the same time. The inherent ambiguity in matrix may make one puzzled about what to do
and whose command to follow.
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A number of management experts argue that there should be a balance between functions and
projects. Yet the traditional matrix seems impossible to solve the problem. In a matrix organization,
since project team members come from different functional departments, they may think and work at
the standpoint of departments rather than the entire output of the project team, unless the project
manager is granted with great power and authority. However, the traditional ‘industrial age’ structures
based on functional hierarchy have such a great influence on today’s organizational behavior that
functional managers usually have greater power than project managers. What’s more, functional
managers are naturally hostile to project managers because their power and status in the organization
are threatened. On the other hand, the project manager is often appointed among the team members and
is actually affiliated to a certain functional department. Therefore, he may consider questions on the
standpoint of his former department because of his specific knowledge background.
In conclusion, although project managers are responsible for the organization’s business processes,
they don’t have corresponding authority to obtain required resources or make decisions. Although the
cross-functional collaboration has eliminated many unnecessary delays and costly changes, team
members are still at a loss when they receive dual commands from projects and functions. To help the
multi-project organizations meet the increasingly dynamic competitive environments, an exploratory
study on new organization structures is at stake.
Reading Materials
Functional Organization in The Navy
httpwww.infodotinc.comcontentadministration12966css12966_297.htm (20040419 adapted)
Much planning coupled with over 200 years of experience has helped to mold the functional
organization of our Navy. One of the key links in this organization is the chain of command. We
have described the roles of the commanding officer; the executive officer; the division
officer. We have also described the functions of the various shipboard departments. But how
do the department heads and division officers fit into this functional organization?
The head of a department represents the commanding officer in all matters that pertain to
that department. A department head is responsible for and reports to the commanding officer the
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operational readiness of the department, the general condition of equipment, and any other matters
relating to the department. The department head is also responsible for the administrative
matters within the department. The department head customarily keeps the executive
officer informed about all departmental matters reported to the commanding officer.
Division officers are responsible to and, in general, act as assistants to department heads. The
division officer is a major link in the ship’s chain of command, particularly aboard a small ship. At
the working level, the division officer carries out the policies of the command and ensures the
division completes assigned tasks in a timely manner.
The division officer makes frequent inspections of personnel, spaces, equipment, and
supplies assigned to the division. The division officer maintains copies of all bills and orders for
the division and posts those that should be posted in conspicuous places. The division officer has
the responsibility for training personnel in the division and preparing them for battle. Just as the
department head reports to the executive officer and the commanding officer, the division officer
reports to the department head.
Ship’s personnel must function as a well- coordinated team. In addition to using the chain of
command, each ship maintains several guides to help ensure this coordination. These guides
include the Standard Organization and Regulations of the U.S. Navy; a battle organization
manual; and a watch, quarter, and station bill. These guides detail, for that particular ship, the
assignment and duties of officers and enlisted personnel. For units under the ship manning
document (SMD) or the squadron manning document (SQMD), the SMD or SQMD, as
applicable, also serves as a battle organization manual and battle bill.
For commanding officers to prepare their ships to fight to the best of their abilities,
ships
must have
a
special organization and system of
communications
for
battle
conditions. These are set forth in the battle organization manual. This document contains four
chapters describing the battle organization, conditions of readiness, battle bill, and interior
communications systems.
Reference
Jack Gido; James P. Clements: Successful Project Management, South-Western College
Publishing, A Division of Thompson Learning, 1999; 机械工业出版社 2002 年。
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