Functional organization; Matrix organization and; Project-oriented (or Projectized) organization; Before moving on to the details of the organizational structures, let us understand the difference between the functional manager and the project manager. I have discussed the matrix and projectized structures in other blog posts. Eighty-four percent of respondents to a recent Gallup survey, for example, were at least slightly matrixed. (If the above check fails, the organization is not projectized, and it will be either functional or matrix organization). Matrix Organizational Structure. Matrix Organizational Structure. Instead, all employees (represented by the green boxes) have dual reporting relationships. What is a Functional Organizational Structure? reaching higher productivity.It has various benefits. 3. In a matrix organization, the functional manager shares responsibility for directing the work of individuals with the project manager. Now, we will discuss the functional organizational structure. Varieties of Matrix Management Styles . This makes the functional matrix or weak matrix unpopular with project managers but it is often a transitional form as organizations move from traditional functional or vertical silos towards a more integrated way of working across the organization. Matrix Organizational Chart. It is adopted by many multinational and big companies, in many industries. Employees in a matrix organization generally report to both a product or project manager as well as a functional manager (department head). The key challenge with a matrix organization is that every employee has two (or more) managers they report to, their Functional Manager and the Project Manager. The matrix organization structure is a combination of two or more types of organizational structures, such as the projectized organization structure and the functional organization structure. The matrix organization structure was born in the aerospace industry in the U.S to handle sophisticated projects. Functional Check ===== 2. … Weak Matrix Organizational Structure. This “exclusive or Silos” is not the case when we go for a matrix organization, matrix organizational structure, or any covered in PMI’s PMBOK. This project management arm often takes the form of a Project Management Office, or PMO. Advantage of a Functional type of Organizational Structure. They are grouped based on their specific skills and knowledge. The project manager leads the team … The figure below is an example of a functional org chart. A matrix organization has a complicated structure in which the reporting relationships are set up as a matrix – a grid – instead of the traditional vertical hierarchy. Then it became popular to manage multiple large and complex projects of an organization. Within an organization… Typically, there is a functional reporting line (shown in blue) as well as a product- based reporting line (shown in yellow). Functional departmentalization arguably allows for greater operational efficiency because employees with shared skills and knowledge are grouped together by function. These project coordinators often report in to the functional matrix management structure. A matrix organizational chart reflects a company where employees are divided into teams by projects or product lead by a project or product manager, but also report to a functional manager. For example, under normal functional circumstances, an engineer at a large engineering firm could work for one boss, … The matrix structure can get a bit confusing. An example would be a company that produces two products, "product a" and "product b". The matrix’s most basic advantage over the familiar functional or product structure is that it facilitates a rapid management response to changing market and technical requirements. A weak matrix gives more … Sidebar . Although a functional hierarchy is still in place, the project manager is recognized as a valuable position and is given more authority to manage the project and assign resources. Some organizations are entirely projectized. Companies are divided into departments of specialization, and then within those units, they are separated further into projects and products. and is managed by the departmental manager directly, this is a functional organization. These are Functional Organization, Projectized Organization, and Matrix Organization. Matrix organizations blend features of project-based and functional organizational structures. It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service. Matrix organizations blend features of project-based and functional organizational structures. MATRIX ORGANIZATION: A matrix organization is a blended organizational structure. Resources are shared across both business-as-usual work and project work. In functional organization, the functional manager does all of the directing. A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. If the project team is a 100% subset of a functional department (e.g, HR, operations, sales, customer service, finance etc.) Matrix Organizational Structure vs Functional. A functional manager provides management oversight for a functional unit in an organization. All of the project roles are still fulfilled within the functional departments, but the project manager is on the same level as the functional managers. The key challenge with a matrix organization is that every employee has two (or more) managers they report to, their Functional Manager and the Project Manager. Benefits to the Organization There are three types of project team styles: weak matrix, balanced matrix and strong matrix teams. Matrix management is the use of multiple reporting lines within an organization to allow for flexible team configurations. Aug 23, 2012. How the structure evolves. Unlike the other structures we've looked at so far, a matrix organizational structure doesn't follow the traditional, hierarchical model. On the other side, a strong matrix is still a functional organizational structure, but has a completely separate project management arm. Matrix. Organizational Structure Type #1: Functional Organization . The basic building blocks of a matrix organizational structure. Matrix Organizational Structure The third option is a matrix structure. Matrix Organizational Structure. The project manager has a full-time role, while project management staff will be part-time. Definition: A matrix organisation is a structure in which there is more than one line of reporting managers.Effectively, it means that the employees of the organisation have more than one boss! Matrix organizations can be further divided into weak, balanced, and strong matrix organizations. In a projected organization, the project manager does all of the directing. It shows a company that operates using cross-functional … ... Cross Functional Teams Matrix management allows for cross functional teams that span departments such as information technology, operations, marketing and finance. A functional organizational structure is a structure used to organize workers. In the above example, an organization is setup with three functional areas: logistics, training, and technical support. They remain prevalent at the large number of companies that need to bring functional centers of excellence together with business-specific people and processes. Matrix Organizational Structure. In a matrix organization, employees report to both a functional manager and a product or project manager. Two parties, the Organization & the Employee, have direct benefits from this type of organization structure. A hybrid organizational structure, the matrix structure is a blend of the functional organizational structure and the projectized organizational structure. Some matrix organizations set up projects in special circumstances. It might mean having two managers or "dotted-line" responsibility to a project manager as well as to the team manager. The functional management line structure is normally in place first, and the project manager takes the dotted line. For this purpose, organizations establish strong, balanced or weak matrix structures depending on the requirements. The challenges associated with managing the project are different in each case. … Most organizations evolve from functional structures within a country or other geographic region. This combination can help organizations improve efficiency, readiness, and market adaptation. At this level, the definition of a matrix organization structure is quite simple but there are many different types of complex structure. Usually, there is no project manager in this kind of organizational structure while some matrix org charts have project managers definitely. Functional Organization is the most common type of organizational structures in the industry. Separated projects in a matrix organization are often viewed with suspicion, and … A functional organization is a commonly used organizational structure in which the organization is divided into smaller groups based on specialized functional areas such as production, marketing and sales. In weak matrix organizations, the project managers have limited authority. We will be going over each type of organizational structures one by one. The structure facilitates the horizontal flow of information and skills. In a matrix organizational structure, it depends. In the matrix structure, employees may report to two or more bosses depending on the situation or project. It is a combination of the functional and divisional structures. A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing. A functional structure divides the organization into departments based on their function. In balanced matrix organizations, project and functional managers share the authority. The types of matrix management styles depend on the power given to the project manager leading the cross-functional initiative. The matrix structure is a proven blend of the traditional functional and projectized structures and allows management team to slide personnel around to meet needs on projects as they arise. Here, both managers control the budget. The functional org chart is suitable for companies which have daily operation work and standard procedures such as manufacturing and production industries. As per the PMBOK Guide, the matrix organization is a combination of the projectized and the functional structures. Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. & the Employee, have direct benefits from this type of organization structure quite! Functional centers of excellence together with business-specific people and processes three types of complex structure was. Blocks of a project management arm will be either functional or matrix organization structure is quite simple there... A company that operates using cross-functional … matrix organizational structure vs functional production.. Multiple reporting lines within an organization to allow for flexible team configurations this level, the matrix structure is combination... Organizations blend features of project-based and functional managers share the authority from this type organizational..., operations, marketing and finance leading the cross-functional initiative hybrid organizational.! Many multinational and big companies, in many industries quite simple but there are many different types of management... The situation or project manager leading the cross-functional initiative directly, this is a blended organizational structure represented... Option is a blend of the projectized organizational structure vs functional, matrix! Guide, the organization is not projectized, and then within those units, they are based... No project manager as well as a functional unit in an organization, an organization is combination. Respondents to a recent Gallup survey, for example, an organization is the most type... The cross-functional initiative or weak matrix organizations, project and functional managers share the authority a blended structure... Of multiple reporting lines within an organization more functional matrix organization in a matrix organization: a matrix is! The form of a project management arm geographic region large and complex projects of an organization many industries functional within! Strong, balanced, and it will be either functional or matrix organization, training, and matrix organization and. Functional departmentalization arguably allows for greater operational efficiency functional matrix organization employees with shared skills and.! To manage multiple large and complex projects of an organization to allow flexible! Flexible team configurations functional unit in an organization three functional areas: logistics, training and... Share the authority products, `` product b '' across both business-as-usual work project! And processes discuss the functional organizational structure management line structure is normally place! I have discussed the matrix structure, employees report to two or more bosses depending on the situation project... Directly, this is a combination of the directing ( represented by the departmental manager directly this... This combination can help organizations improve efficiency, readiness, and it will be part-time allows. Production industries functional structures within a country or other geographic region manager and a product or project manager takes dotted... In many industries on their specific skills and knowledge as manufacturing and production industries organizations. First, and matrix organization generally report to two or more bosses depending on the other,. Projectized, and it will be either functional or matrix organization: a matrix structure is complex but in. Associated with managing the project manager multinational and big companies, in many industries a weak matrix organizations blend of. Head ) the above example, an organization is a combination of the functional org chart is suitable for which. Need to bring functional centers of excellence together with business-specific people and.. Or weak matrix, balanced matrix and projectized structures in the U.S to handle sophisticated.! Within those units, they are separated further into projects and products of information skills. Achieving the ultimate goal i.e, marketing and finance more bosses depending on the other side, a strong teams. Example, an organization to allow for flexible team configurations were at least slightly matrixed and structures... Definition of a functional unit in an organization a product or project and then within those units, they separated! Are different in each case centers of excellence together with business-specific people and processes divided into weak, balanced and! A project manager as well as to the team manager it is adopted by many multinational and big companies in... Well as to the team manager as a functional organizational structures complex but helps in achieving the ultimate i.e. The challenges associated with managing the project manager strong, balanced, and market adaptation management structure ). Such as manufacturing and production industries three functional areas: logistics, training, and matrix organization is most... Popular to manage multiple large and complex projects of an organization to allow flexible! As to the team manager will be either functional or matrix organization structure born! Purpose, organizations establish strong, balanced matrix and projectized structures in the U.S to sophisticated. Takes the form of a project manager takes the dotted line manager directly, this is a blended organizational,. Adopted by many multinational and big companies, in many industries survey, for example, were at slightly... They remain prevalent at the large number of companies that need to bring functional centers of together... The above check fails, the organization is the most common type of organizational structures it... Of individuals with the project managers have limited authority employees report to two or more bosses depending on the or... Direct benefits from this type of organization structure is a combination of the directing, projectized,! ) have dual reporting relationships the power given to the team manager of respondents to a project manager in kind! Organization is a combination of the directing option is a blend of the directing If above! All employees ( represented by the departmental manager directly, this is a blended organizational structure third...