CIMA E2 Syllabus C. Managing projects - Projects: Matrix Structure - Notes ^{6 / 6}

A matrix structure is an effective project management structure combining the benefits of decentralization and those of coordination. It adds flexibility and lateral coordination drawing members from a number of different functions.

Features of a matrix structure include

1. A horizontal project structure overlaid on a normally functional hierarchy

2. Two chains of command - project and functional

3. Individuals working on one or more projects

4. Projects having a full time designated manager

Characteristics that make the matrix structure most suitable for an organisation are as follows:

1. The business of the organisation consists of a series of projects

2. The projects have different start and end dates

Types of matrix structures

1. Lightweight

   The project manager coordinates the project and can chair meetings between the relevant departments. However, the project manager has limited power to enforce the commitment of departmental members.

2. Balanced

   The department is incentivised to commit to the project by making part of the department’s income contingent on the project’s success. While this increases the power of the project manager, it can create conflict between departmental objectives and project objectives.

3. Heavyweight

   Departmental members are allocated to the project on a full-time basis. They can for the defined period give their full attention to the project without distraction. However, this leaves the department without those staff members for the duration of the project.

Advantages of a matrix structure include:

1. Increased motivation

2. Improved communication

3. Less duplication across projects

4. Improved decision making

5. Increased flexibility

6. Replaces formal control with direct contact

7. Employees will have dual reporting lines

8. Lateral communications are improved

9. Managers are exposed to organisation wide problems

Disadvantages of a matrix structure include complexity, tensions are implicit in the process and conflicting loyalty.