Matrix-Based Organization

Matrix-Based Organization - A matrixed organization is one where people report to a specialized department and specialist are shared on projects when they are needed. Matrixed organizations allow functional departments to focus on their specific business competencies and allow projects to be staffed with specialists from the functional areas when they are needed.

For instance, Database Administrators may all report to one functional department, but would be allocated out to work on various projects in other departments when needed. Likewise, a Legal resource might report to the Legal Department, but be assigned to a project in another organization that needs legal expertise.

It is common for people to report to one person in the functional organization while working for one or two project managers from other departments.

The main advantage of the matrix organization is the efficient allocation of all resources, especially scarce specialty skills that cannot be fully utilized by only one project.

For instance, data modeling specialists may not be utilized full-time on a project, but can be fully leveraged by working on multiple projects. The Matrix-Based Organization also is the most flexible when dealing with changing business needs and priorities.

The main disadvantage is that the reporting relationships are complex. Some people might report to a functional manager for whom little work is done, while actually working for one or more project managers. It becomes more important for staff members to develop strong time management skills to ensure that they fulfill the work expectations of multiple managers.

This organization also requires communication and cooperation between multiple functional and project managers that need time from the same resources.

Meeting Fundamentals


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