Management Studies: project manager

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Matrix Organization Structure | Usefulness of Matrix Organization Structure

Matrix organization is a newly evolving organization structure which has received considerable attention in the developed as well as developing countries. This organization is formed to complete various types of project of specific and unique nature. This is also known as project management structure. It requires diverse technical and administrative experts to adjust efficiently with the dynamic and rapidly changing environment of the business.

The matrix organizational structure super imposes a divisional structure over a functional structure in order to combine the efficiency of the functional approach with the flexibility and responsiveness to change of the divisional approach. Each employee in a matrix unit reports to two bosses – a functional manager and a product or project manager. This means that there are dual lines of authority in the matrix organization.

Matrix Organization Structure

As seen in figure, there is a vertical chain of command for the functions of production, finance, marketing and research and development. There is a lateral chain of command for the three projects. An engineer who is assigned to work in project A will report to both project manager A and the production manager of production department.

A matrix structure is the most complex of all designs because it depends upon both vertical and horizontal flows of authority and communication (hence the term matrix). In contrast, functional and divisional structures depend primarily on vertical flows of authority and communication. A matrix structure can result in higher overhead because of more management positions. Other characteristics of a matrix structure that contribute to overall complexity include dual lines of budget authority (a violation of the unity command principle), dual sources of reward and punishment, shared authority, dual reporting channels, and a need for an extensive and effective communication system. Despite its complexity, the matrix structure is widely used in many industries, including construction, healthcare, research and defense.

Usefulness of Matrix Organization Structure

A matrix structure is useful when the following conditions exist:

When there is an external pressure for a dual focus, a matrix structure will be useful. The external pressure in the organization requires focusing organization’s efforts on responding to multiple external factors as well as on internal operations at the same time.
When there is pressure for a high information-processing capacity.
When there is pressure for sharing resources.

Advantages of Matrix Organization Structure

Some advantages of a matrix structure are as follows:

Environmental Adaptation: Matrix organization has been designed to cope with the complexities of multi-product, multinational organizations. This structure is able to adapt to changes in the environment. Responses to environmental changes are quickly made in this structure.
Sharing Resources: This structure facilitates the proper sharing and utilization of highly specialized staff, equipment and resources. Each project or product unit can share the specialized resource with other units, rather than duplicating it to provide independent service for each.
Professional Identification: The matrix organization provides the professional identification of specialists and professionals based on their specialization and efficiency. Talented specialists can be utilized more efficiently under this structure.
Flexibility: Matrix structure fosters flexibility throughout eh organization. Various skills can be brought together in this type of organization.
Effective Control: The main responsibility of the project manager is to maintain coordination among interrelated factors of a particular project. He has to communicate both with the horizontal and vertical authorities so that the project work can be run smoothly. Similarly, functional managers are responsible for providing technical and administrative guidance to projects. This leads to a better and more effective control over regular operation.
Strategic Thinking: This structure encourages delegation of authority to project managers. They are responsible for regular operation of the project. They have the authority to take decisions related to the day-to-day operation of projects. This provides sufficient time to the top management to strategic thinking such as to make strategic planning and policies rather than operational activities. The initiation and creativity of the top level management are necessary for further development of organizational activities.

Disadvantages of Matrix Organization Structure

Matrix structure has several disadvantages. They are as follows:

Lack of Unity of Command: In matrix structure, subordinates have to follow instructions from more than one superior. Generally, they receive orders from functional managers as well as from project managers. In some cases, subordinates may receive instructions from both the superiors at a time. This structure violates the principle of unity of command.
Costly: This structure increases administrative cost. In this structure, specialists from the project as well as functional authorities involve in project works. It increases paperwork and other information costs. Besides, it is essential to pay lump-sum remuneration to functional and project specialists. Hence, this structure is costly to implement and maintain.
Power Struggle: One of the main problems with the matrix structure is that the project manager and functional manager may not agree on priorities or resource allocations, leading to conflict and power struggle.
Difficulties: Matrix structure requires a high level of interpersonal relations and skill. It is essential to involve both functional and project specialists. Besides, it is essential to maintain a balance among these authorities to bring about uniformity in the organizational performance. In practical field, it is more difficult to maintain a balance among these authorities, especially if they have no positive attitude towards each other.
Slowness in Decisions: Functional and project specialists can shift responsibility for decision making. This delays decisions. Likewise, all decisions may become group decisions, leading to gross inefficiency.

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Linear Responsibility Chart / Matrix Responsibility Chart
Matrix Organization Structure
Historical Overview of Project Management in Developing Countries

Project Management Information System (PMIS)

Project operates in a dynamic environment. The project manager needs timely and accurate information to respond to environmental changes. Information is the life blood of a project. It is a prerequisite of project control. It is vital for managing stakeholder expectations.

Project Management Information System (PMIS) is a database for project. It collects, analyses, stores, retrieves and disseminated project information for making project decisions. It consists of people, equipment and procedures. It is generally of an ad-hoc nature till the life of the project.

Project Management Information System is based on various forms and reports that generate written information for decision making and control. The requirements for PMIS are:

Project forms are filled-in periodically based on the measurement of progress of each activity.
The forms are entered in the PMIS and analyzed to prepare a report for dissemination to all the concerned project personnel.
Corrective actions are taken by the project manager based on performance deviations identified by PMIS reports.

Project Management Information Cycle

A project's performance is measured and recorded in prescribed forms. The forms are analyzed and combined into reports by PMIS to act for corrective actions. Data are not be collected if they are not going to be analyzed. This is essential to avoid information overload.

PMIS reports should identify critical control points so that corrective actions can be taken.

Elements of Project Management Information System (PMIS)
The project management information system consists of inputs-transformation-outputs-feedback.

Project Management Information System (PMIS)

Inputs: It consists of data generated internally by various project forms on a periodic basis. External sources can also generate data, for example functional departments can provide data to project.
Transformation: It consists of analysis, storage, retrieval and dissemination of data and information.
Outputs: It consists of regular and special reports about project performance.
Feedback: It provides information to redesign PMIS for inputs and transformation activities.

Computerized PMIS are most commonly used to consolidate data in projects. Decision support system database are used to analyze data. Software is carefully selected.

Project Manger and Line Manager Interface

Project manager and line manager interface refers to working relationship between project manager and line manager to get project activities accomplished within constraint of limited time, allocated cost and specified quality performance.

Project manager is fully responsible to achieve the project objectives within the parameters (constraints) of time, cost and quality standard.

Project manager needs all types of human and non-human resources like money, man-power, materials, equipment, information and technology etc. for the successful completion of a project through smooth operation of project activities. But project manager does not control the resources directly accepted the project budget. The resources are collected by line managers, they are often called as resource manager. They assign directly to resources to projects. Project mangers control only those resources which are temporarily loaned by line managers. S/he reminds the line managers that there are also time and cost constraints of the project. This is the starting point for better resource control. Therefore project manager must negotiate with all line mangers for pooling require resources on time.

Project manager always requires to interface with the line mangers for the following major purposes.

To get needed resources from functional department on time.
To get good support of line managers while negotiating with various parties in connection with project work.
To achieve harmonization between project works and line department's work.
To get technical and managerial assistance.
To solve the project related problems.

The effective project management and project success is highly dependent on working relationship between project manager and line manger. So there must be better coordination, reporting, communication and negotiation between them for good working relationship. Moreover to promote good working relationship, project manager should help a proper understanding of;

Quantitative tools and techniques for planning, scheduling and controlling work.
Organization structure, own job description.
Open communication with line managers including effective coordination.
Organizational behavior to tackle the problems of dual reporting system.

Project Planning, Organizing, Implementing

Project Planning

The project manager is responsible for preparation of detailed project plan. It involves:

Definition of work requirements
Scheduling of project
Definition of resources needed
Definition of quantity of work and specifications.

Project Organization Design

The project manager is responsible for designing the project structure by:

Dividing project workload into tasks for job specialization.
Grouping task and people into project divisions.
Establishing authority-responsibility relationships for project personnel.
Coordination mechanism for integration.
Management of interfaces with the parent organization.

Project Implementation

The project manager is responsible for project implementation. The activities consist of:

Awarding and managing contracts
Appointing consultants
Mobilization of resources
Procurement of goods and services
Solving problems as they arise
Providing leadership
Building a solid information network

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Balancing Role of Project Manager

The project manage creates a balance between the interests and conflicting needs of :

Customer (client)
Functional Departments
Project
Project Team
Stakeholders

The project manager maintains a customer focus in the project to satisfy customer needs. All projects have customers (clients) and groups of beneficiaries.
The project manager manages interfaces with the functional departments of the organization to acquire project people and resources to get things done. He interacts with the on-going operations of the parent organization.
The project manager performs the front person role for the project. He preserves integrity of the project at all time.
The project manager balances the needs of the team members by bringing harmony in project goal and individual goal.
The project manager satisfies the needs of stakeholders who have interest in the project and can impact project outcome. He manages the contractors, consultants, suppliers and financiers of the project. He develops trusting relationships with the project stakeholders.

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Roles of Project Manager

Roles are the organized set of behaviors related to an identifiable position. The project manager is responsible for project results in a changing environment. His role is difficult because he is managing people who have dual responsibilities.

Leadership Role

The project manager is the chief of the project and leader of the project team.

the project manager provides overall leadership to the project by directing and influencing the project related activities of the people in the project. He is a coach as well as a facilitator.
The project manager as leader of the project team organizes and integrates people from various disciplines and departments. He motivates team members, manages conflicts, builds team loyalty and creates team identity. He directs team efforts towards project objectives.

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Conceptual and Team Building Skill

Conceptual Skill

Conceptual skill are the ability to relate the project to environmental forces with a systems perspective. These skills are essential for optimization of project performance. The project manager should have mission, foresight, judgment and intuition. Mission is the reason for performing the project work.

Team Building Skill

Team building skill are the ability to integrate people from many disciplines and departments into an effective team. The project manager should build and maintain effective team. He should create a conductive environment for teamwork by:

Setting guidelines and targets for team members and helping them to prioritize workloads.
Assigning responsibilities.
Creating commitment and strong sense of identity and loyalty for the project by sustaining team spirit and focusing on performance. Individual efforts should result in positive synergy.
Getting timely feedback and keeping everyone informed of project progress.
Maintaining accountability.
Showing concern for continuous quality improvement in the project. Revisiting work designs.
Leading and motivating team members to participate actively to attain project objectives. Shared leadership roles.
Managing conflicts. Creating functional conflicts.
Taking sincere interest in the growth and development of team members through training and coaching.
Taking risks in the project interests.
Providing a good work environment.

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Managerial Skills of Project Manager

The most required skill for successful attainment of project goal remains on managerial skill. Managerial skill is the ability to practice management concepts, tools and techniques. The specific skills needed are:

Planning and control skills: Planning is ability to set targets and decide actions to achieve targets. Control is to measure performance to take corrective actions.
Organization skills: It is getting the project team together and assigning authority and responsibility to each member.
Decision making skills: It is to understand the problem, identify and evaluate alternatives and make a choice and implement the decision.
Human resource management skills: It is effectively utilizing the energy and potential of project team by managing people.
Leadership skills: It is directing and influencing the project team to achieve project objectives willingly and enthusiastically.
Budgeting skills: It is allocating, utilizing and controlling project resources.

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Technical Skills of Project Manager

Project manager is a single responsibility center with full accountability for project results. The success and failure depends upon the management done by project manager. Management of project is a challenging job. Proper handling of project will lead to success of the project. The skills required for project manager are as follows:

Technical Skills

Technical skills are the ability to perform a specialized task. Project manager must have some how technical knowledge but should not be the technical expert. However, project manager should be able to:

understand technology involve in the project.
evaluate technical concepts and solutions.
communicate in technical terms with project team.
assess technical risks, trends and innovations.

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Pages

Usefulness of Matrix Organization Structure

Advantages of Matrix Organization Structure

Disadvantages of Matrix Organization Structure