Matrix Organisation - Revision history

S220100: /* Types of Matrix Organizations and the "two-boss structure" */

2022-03-22T19:55:34Z

Types of Matrix Organizations and the "two-boss structure"

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	===Types of Matrix Organizations and the "two-boss structure"===		===Types of Matrix Organizations and the "two-boss structure"===

	As it can be seen in the figure and as earlier described, the project personnel has two managers whom each has their different responsibilities. As described earlier in the article the organization can either have a project or a functional orientation. But when a matrix organization is used, it is possible to have a balance between these two orientations. This is due to the “two-boss structure” where the project manager and functional manager each have their focus on the project. The balance in between which focus is of highest importance is determined by the top management. The difference between the organizations is who of the managers has the most authority over the project personnel. This means that three different matrix structures are possible which are listed underneath: <ref name="Kuprenas" />		As it can be seen in the first figure and as earlier described, the project personnel has two managers whom each has their different responsibilities. As described earlier in the article the organization can either have a project or a functional orientation. But when a matrix organization is used, it is possible to have a balance between these two orientations. This is due to the “two-boss structure” where the project manager and functional manager each have their focus on the project. The balance in between which focus is of highest importance is determined by the top management. The difference between the organizations is who of the managers has the most authority over the project personnel. This means that three different matrix structures are possible which are listed underneath: <ref name="Kuprenas" />

S220100: /* Matrix forms and "two-boss structure" */

2022-03-22T19:54:55Z

Matrix forms and "two-boss structure"

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	Even though there are a lot of positive effects of implementing the matrix organization, some of the effects are also difficult to achieve and can only be achieved if the matrix is implemented correct and thoughtful. Some reported problems and weaknesses are strongly related to the “two-boss structure”. The “two-boss structure” will be described and discussed underneath and also the consequences of having to bosses.		Even though there are a lot of positive effects of implementing the matrix organization, some of the effects are also difficult to achieve and can only be achieved if the matrix is implemented correct and thoughtful. Some reported problems and weaknesses are strongly related to the “two-boss structure”. The “two-boss structure” will be described and discussed underneath and also the consequences of having to bosses.

	===Matrix ~~forms~~ and "two-boss structure"===		===Types of Matrix Organizations and the "two-boss structure"===

	As it can be seen in the figure and as earlier described, the project personnel has two managers whom each has their different responsibilities. As described earlier in the article the organization can either have a project or a functional orientation. But when a matrix organization is used, it is possible to have a balance between these two orientations. This is due to the “two-boss structure” where the project manager and functional manager each have their focus on the project. The balance in between which focus is of highest importance is determined by the top management. The difference between the organizations is who of the managers has the most authority over the project personnel. This means that three different matrix structures are possible which are listed underneath: <ref name="Kuprenas" />		As it can be seen in the figure and as earlier described, the project personnel has two managers whom each has their different responsibilities. As described earlier in the article the organization can either have a project or a functional orientation. But when a matrix organization is used, it is possible to have a balance between these two orientations. This is due to the “two-boss structure” where the project manager and functional manager each have their focus on the project. The balance in between which focus is of highest importance is determined by the top management. The difference between the organizations is who of the managers has the most authority over the project personnel. This means that three different matrix structures are possible which are listed underneath: <ref name="Kuprenas" />

S220100: /* Advantages */

2022-03-22T19:53:04Z

Advantages

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	===Advantages===		===Advantages===

	One of the advantages of the matrix organization is the efficient use of resources. Because of the vertical direction between the project management, it is possible to share the different competencies among different projects. If some resources are limited, it is also easier to determine the priorities between projects, thus the matrix organization limits the costs. Not only is it easy to share the resources among different projects but it also results in a less restricted information flow among projects. Because of the vertical and horizontal information flow, it enables to limit the information to each manager to be the most necessary for each manager. <ref name="FordRandolph" /> E.g., the functional manager can focus on the technicalities of the project whereas the project manager can focus on the milestones or schedule. When having these focused groups of project personnel and specified information flow, it enhances the technological development because the experts are kept together. When a project is ended or terminated the expert groups can start working on another project together. Thus, the different information and know-how gathered in other projects is not lost and increased productivity and innovation is achieved. <ref name="Stuckenbruck" />		One of the advantages of the matrix organization is the efficient use of resources. Because of the vertical direction between the project management, it is possible to share the different competencies among different projects. If some resources are limited, it is also easier to determine the priorities between projects, thus the matrix organization limits the costs. Not only is it easy to share the resources among different projects but it also results in a less restricted information flow among projects. Because of the vertical and horizontal information flow, it enables to limit the information to each manager to be the most necessary for each manager. <ref name="FordRandolph" /> E.g., the functional manager can focus on the technicalities of the project whereas the project manager can focus on the milestones or schedule. When having these focused groups of project personnel and specified information flow, it enhances the technological development because the experts are kept together. When a project is ended or terminated the expert groups can start working on another project together. Thus, the different information and know-how gathered in other projects is not lost and increased productivity and innovation can be achieved. <ref name="Stuckenbruck" />

	When doing projects often there has to be involved some kind of risk management and also the managers have to be able to react to uncertainties quickly. Especially in large scale projects where there is a high complexity which can cause severe delays. As defined earlier the lateral communication allows information sharing between technical departments and increases productivity, but another advantage is the ability to react quickly to uncertainties. The increased contact among the different departments causes them to interact more often which means faster decision making is possible and thereby making the organization more robust in means of uncertainties and risks. <ref name="FordRandolph" />		When doing projects often there has to be involved some kind of risk management and also the managers have to be able to react to uncertainties quickly. Especially in large scale projects where there is a high complexity which can cause severe delays. As defined earlier the lateral communication allows information sharing between technical departments and increases productivity, but another advantage is the ability to react quickly to uncertainties. The increased contact among the different departments causes them to interact more often which means faster decision making is possible and thereby making the organization more robust in means of uncertainties and risks. <ref name="FordRandolph" />

S220100: /* Advantages */

2022-03-22T19:48:49Z

Advantages

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	===Advantages===		===Advantages===

	~~Some~~ of the advantages of the matrix organization ~~are~~ the efficient use of resources. Because of the vertical direction between the project management, it is possible to share the different competencies among different projects. If some resources are limited, it is also easier to determine the priorities between projects, thus the matrix organization limits the costs. Not only is it easy to share the resources among different projects but it also results in a less restricted information flow among projects. Because of the vertical and horizontal information flow, it enables to limit the information to each manager to be the most necessary for each manager. <ref name="FordRandolph" /> E.g., the functional manager can focus on the technicalities of the project whereas the project manager can focus on the milestones or schedule. When having these focused groups of project personnel and specified information flow, it enhances the technological development because the experts are kept together. When a project is ended or terminated the expert groups can start working on another project together. Thus, the different information and know-how gathered in other projects is not lost and increased productivity and innovation is achieved. <ref name="Stuckenbruck" />		One of the advantages of the matrix organization is the efficient use of resources. Because of the vertical direction between the project management, it is possible to share the different competencies among different projects. If some resources are limited, it is also easier to determine the priorities between projects, thus the matrix organization limits the costs. Not only is it easy to share the resources among different projects but it also results in a less restricted information flow among projects. Because of the vertical and horizontal information flow, it enables to limit the information to each manager to be the most necessary for each manager. <ref name="FordRandolph" /> E.g., the functional manager can focus on the technicalities of the project whereas the project manager can focus on the milestones or schedule. When having these focused groups of project personnel and specified information flow, it enhances the technological development because the experts are kept together. When a project is ended or terminated the expert groups can start working on another project together. Thus, the different information and know-how gathered in other projects is not lost and increased productivity and innovation is achieved. <ref name="Stuckenbruck" />

	When doing projects often there has to be involved some kind of risk management and also the managers have to be able to react to uncertainties quickly. Especially in large scale projects where there is a high complexity which can cause severe delays. As defined earlier the lateral communication allows information sharing between technical departments and increases productivity, but another advantage is the ability to react quickly to uncertainties. The increased contact among the different departments causes them to interact more often which means faster decision making is possible and thereby making the organization more robust in means of uncertainties and risks. <ref name="FordRandolph" />		When doing projects often there has to be involved some kind of risk management and also the managers have to be able to react to uncertainties quickly. Especially in large scale projects where there is a high complexity which can cause severe delays. As defined earlier the lateral communication allows information sharing between technical departments and increases productivity, but another advantage is the ability to react quickly to uncertainties. The increased contact among the different departments causes them to interact more often which means faster decision making is possible and thereby making the organization more robust in means of uncertainties and risks. <ref name="FordRandolph" />

S220100: /* Challenges in a matrix organization */

2022-03-22T19:46:27Z

Challenges in a matrix organization

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	The added complexity in the organization means it is not necessarily applicable to all different kinds of companies. Because of the “two-boss structure” there must be a clear definition of the different responsibilities for each manager also how, what and who the project personnel refer to regarding their deliveries. Thus, the top management has to be involved and motivated to make the matrix organization work. Also, both the project and functional manager has to be involved and engaged. The importance of the different management engagement is necessary because of how the organization is structured. When adopting the matrix, the idea is that it should be easier to design the management around multiple tasks and still ensure a high sharing of information among the technical departments and handle complex projects and programs.<ref name="Stuckenbruck"> Stuckenbruck, L. C., The Matrix Organization. Project Management Quarterly, PMI, Volume 10, Issue 3, 1979, Pages 21–33</ref>		The added complexity in the organization means it is not necessarily applicable to all different kinds of companies. Because of the “two-boss structure” there must be a clear definition of the different responsibilities for each manager also how, what and who the project personnel refer to regarding their deliveries. Thus, the top management has to be involved and motivated to make the matrix organization work. Also, both the project and functional manager has to be involved and engaged. The importance of the different management engagement is necessary because of how the organization is structured. When adopting the matrix, the idea is that it should be easier to design the management around multiple tasks and still ensure a high sharing of information among the technical departments and handle complex projects and programs.<ref name="Stuckenbruck"> Stuckenbruck, L. C., The Matrix Organization. Project Management Quarterly, PMI, Volume 10, Issue 3, 1979, Pages 21–33</ref>

	=Challenges in a ~~matrix organization~~=		=Challenges in a Matrix Organization=

	There are no best practice for matrix organization structures or implementation which fits all companies. How the organizations structural needs are, is different for each company which means that a matrix will not by defintion work. But there are some general advantages and disadvantages in integrating a matrix organization in the company, which are listed as bullet points and explained afterwards.		There are no best practice for matrix organization structures or implementation which fits all companies. How the organizations structural needs are, is different for each company which means that a matrix will not by defintion work. But there are some general advantages and disadvantages in integrating a matrix organization in the company, which are listed as bullet points and explained afterwards.

S220100: /* The creation of the Matrix Organization */

2022-03-22T19:45:35Z

The creation of the Matrix Organization

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	The matrix organization is a complex project organization due to the multiple managers. This may seem like a needless expense to have these additional managers for companies who are already using a more traditional functional or project oriented organization. Indeed, it is an added expense initially but when the matrix organization is implemented it often results in better productivity with respect to the project delivery. <ref name="Kuprenas"> John A Kuprenas, Implementation and performance of a matrix organization structure, International Journal of Project Management, Volume 21, Issue 1, 2003, Pages 51-62</ref>		The matrix organization is a complex project organization due to the multiple managers. This may seem like a needless expense to have these additional managers for companies who are already using a more traditional functional or project oriented organization. Indeed, it is an added expense initially but when the matrix organization is implemented it often results in better productivity with respect to the project delivery. <ref name="Kuprenas"> John A Kuprenas, Implementation and performance of a matrix organization structure, International Journal of Project Management, Volume 21, Issue 1, 2003, Pages 51-62</ref>

	The added complexity in the organization means it is not necessarily applicable to all different kinds of companies. Because of the “two-boss structure” there must be a clear definition of the different responsibilities for each manager also how, what and who ~~the~~ the project personnel refer to regarding ~~the~~ deliveries. Thus, the top management has to be involved and motivated to make the matrix organization work. Also, both the project and functional manager has to be involved and engaged. The importance of the different management engagement is necessary because of how the organization is structured. When adopting the matrix, the idea is it should be easier to design the management around multiple tasks and still ensure a high sharing of information among the technical ~~department~~ and handle complex ~~tasks~~.<ref name="Stuckenbruck"> Stuckenbruck, L. C., The Matrix Organization. Project Management Quarterly, PMI, Volume 10, Issue 3, 1979, Pages 21–33</ref>		The added complexity in the organization means it is not necessarily applicable to all different kinds of companies. Because of the “two-boss structure” there must be a clear definition of the different responsibilities for each manager also how, what and who the project personnel refer to regarding their deliveries. Thus, the top management has to be involved and motivated to make the matrix organization work. Also, both the project and functional manager has to be involved and engaged. The importance of the different management engagement is necessary because of how the organization is structured. When adopting the matrix, the idea is that it should be easier to design the management around multiple tasks and still ensure a high sharing of information among the technical departments and handle complex projects and programs.<ref name="Stuckenbruck"> Stuckenbruck, L. C., The Matrix Organization. Project Management Quarterly, PMI, Volume 10, Issue 3, 1979, Pages 21–33</ref>

	=Challenges in a matrix organization=		=Challenges in a matrix organization=

S220100: /* The creation of the Matrix Organization */

2022-03-22T19:42:02Z

The creation of the Matrix Organization

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	This causes a “two-boss structure” which means that the people who are working on the project has two direct reporting relationships. The consequence of this “two-boss structure” will be discussed later in the article. To the right, a figure of the matrix organization is illustrated.		This causes a “two-boss structure” which means that the people who are working on the project has two direct reporting relationships. The consequence of this “two-boss structure” will be discussed later in the article. To the right, a figure of the matrix organization is illustrated.
	The figure illustrates how the project personnel have two managers and ~~what their managers' competencies are, concerning~~ the ~~project they are working on~~.		The figure illustrates how the project personnel have two managers and the overall structure of a matrix organization.

	The matrix organization is a complex project organization due to the multiple managers. This may seem like a needless expense to have these additional managers for companies who are already using a more traditional functional or project oriented organization. Indeed, it is an added expense initially but when the matrix organization is implemented it often results in better productivity with respect to the project delivery. <ref name="Kuprenas"> John A Kuprenas, Implementation and performance of a matrix organization structure, International Journal of Project Management, Volume 21, Issue 1, 2003, Pages 51-62</ref>		The matrix organization is a complex project organization due to the multiple managers. This may seem like a needless expense to have these additional managers for companies who are already using a more traditional functional or project oriented organization. Indeed, it is an added expense initially but when the matrix organization is implemented it often results in better productivity with respect to the project delivery. <ref name="Kuprenas"> John A Kuprenas, Implementation and performance of a matrix organization structure, International Journal of Project Management, Volume 21, Issue 1, 2003, Pages 51-62</ref>

S220100: /* The beginning of the Matrix Organization */

2022-03-22T19:39:13Z

The beginning of the Matrix Organization

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	In the last decades, there has not been significant research on how it is used and how to benefit from the matrix organization, but it will be discussed how it can be implemented and how to avoid certain pitfalls and it is described and discussed how it is used today in large corporations.		In the last decades, there has not been significant research on how it is used and how to benefit from the matrix organization, but it will be discussed how it can be implemented and how to avoid certain pitfalls and it is described and discussed how it is used today in large corporations.

	=The ~~beginning~~ of ~~the Matrix~~ Organization=		=The structure of a Project Organization=

	A project organization can be structured primarily in three different ways. The project organization can either be structured as functional or project orientated or as a matrix organization.		A project organization can be structured primarily in three different ways. The project organization can either be structured as functional or project orientated or as a matrix organization.

S220100: /* The beginning of the Matrix Organization */

2022-03-22T19:38:03Z

The beginning of the Matrix Organization

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	A functional orientated organization is when the managers primarily are specialists and analytically oriented within their field of speciality. Also, the manager is a technical supervisor. A project oriented organization is more generalist in their management. They are often a facilitator with a general experience in managing diverse projects. <ref name="Dunn"> Steven C. Dunn, Motivation by Project and Functional Managers in Matrix Organizations, Engineering Management Journal, Volume 13, Issue 2, 2001, Pages 3-10</ref>		A functional orientated organization is when the managers primarily are specialists and analytically oriented within their field of speciality. Also, the manager is a technical supervisor. A project oriented organization is more generalist in their management. They are often a facilitator with a general experience in managing diverse projects. <ref name="Dunn"> Steven C. Dunn, Motivation by Project and Functional Managers in Matrix Organizations, Engineering Management Journal, Volume 13, Issue 2, 2001, Pages 3-10</ref>
	The advantage of a ~~functional~~ project organization is the enhancement of technological development by allowing the different involved employees to focus on their field of expertise, which also enables pooling of resources among different projects. These technical capabilities are important for a company to continuously improve their development of products. However, a consequence of this type of organization is the difficulty in coordinating these specialized resources among different projects. This can cause late delivery of the project or an increase in the costs because additional technical personnel must be procured. <ref name="FordRandolph"> Ford R. C. , Randolph W. A., Cross-Functional Structures: A Review and Integration of Matrix Organization and Project Management, Journal of Management, Volume 18, Issue 2, 1992, Pages 267-294 </ref>
			The advantage of a project oriented organization is the enhancement of technological development by allowing the different involved employees to focus on their field of expertise, which also enables pooling of resources among different projects. These technical capabilities are important for a company to continuously improve their development of products. However, a consequence of this type of organization is the difficulty in coordinating these specialized resources among different projects. This can cause late delivery of the project or an increase in the costs because additional technical personnel must be procured. <ref name="FordRandolph"> Ford R. C. , Randolph W. A., Cross-Functional Structures: A Review and Integration of Matrix Organization and Project Management, Journal of Management, Volume 18, Issue 2, 1992, Pages 267-294 </ref>

	The strength and weakness of the functional orientated organization is the opposite of the project orientated organization. When the organization is project focused, it allocates the resources needed to complete the project and thereby ensuring a successfully delivered project. The consequences of this are the technical development is limited to the project, which causes the technical development to fall behind because the focus is on the individual projects.		The strength and weakness of the functional orientated organization is the opposite of the project orientated organization. When the organization is project focused, it allocates the resources needed to complete the project and thereby ensuring a successfully delivered project. The consequences of this are the technical development is limited to the project, which causes the technical development to fall behind because the focus is on the individual projects.

S220100 at 19:31, 22 March 2022

2022-03-22T19:31:43Z

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	The wiki article will describe a matrix project organization. A matrix project organization is an organization developed in the 50’s and 60’s in the American aerospace industry. This was due to the demand for a convenient way of handling large scale and complex projects. Thus, the organization is formed around the project in a matrix organization. The Project Management Institute (PMI) defines a matrix organization as "''any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project''".<ref name="PMI">Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition ed., Pennsylvania: Project Management Institute, Inc., 2013.</ref> The organization structure causes the project personnel to have a “two boss structure” because the project personnel will refer to their normal functional manager but also a project manager as defined by PMI. As indicated, a matrix project organization is a very different organization than a more traditional hierarchical organization.<ref name="Galbraith" />		The wiki article will describe a matrix project organization. A matrix project organization is an organization developed in the 50’s and 60’s in the American aerospace industry. This was due to the demand for a convenient way of handling large scale and complex projects. Thus, the organization is formed around the project in a matrix organization. The Project Management Institute (PMI) defines a matrix organization as "''any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project''".<ref name="PMI">Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition ed., Pennsylvania: Project Management Institute, Inc., 2013.</ref> The organization structure causes the project personnel to have a “two-boss structure” because the project personnel will refer to their normal functional manager but also a project manager as defined by PMI. As indicated, a matrix project organization is a very different organization than a more traditional hierarchical organization.<ref name="Galbraith" />

	Even though it is a complex organizational structure it ~~has~~ can have more advantages than disadvantages, if the company ~~have~~ the resources to manage it. The complexity in a matrix organization ~~result~~ in increased sharing of information among colleagues, but the “two-boss structure” also cause reduced project agility because of the necessity that everyone needs to have the same information before deciding. To ensure a project's success there are certain pitfalls to be avoided. Because of its complexity within the organization, it is needed that the executive management is engaged in making the matrix organization work and encouraging the functional and project manager.		Even though it is a complex organizational structure it can have more advantages than disadvantages if the company has the necessary resources to manage it. The complexity in a matrix organization results in increased sharing of information among colleagues, but the “two-boss structure” also cause reduced project agility because of the necessity that everyone needs to have the same information before deciding. To ensure a project's success there are certain pitfalls to be avoided. Because of its complexity within the organization, it is needed that the executive management is engaged in making the matrix organization work and encouraging the functional and project manager.
	In the last decades, there has not been significant research on how it is used and how to benefit from the matrix organization, but it will be discussed how it can be implemented and how to avoid certain pitfalls and it is described and discussed how it is used today in large corporations.		In the last decades, there has not been significant research on how it is used and how to benefit from the matrix organization, but it will be discussed how it can be implemented and how to avoid certain pitfalls and it is described and discussed how it is used today in large corporations.