Matrix Organization

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A matrix structure organizes people and resources simultaneously, by function and product. Employees with similar skills are grouped together for product work. For example, all engineers may be in one engineering department and report to an Engineering Manager, but these same engineers may be assigned to different projects and report to a different Project Manager while working on that project. There are vary degrees of the Matrix Organization, including: 1) Functional Matrix- Project Managers have little authority; consequently decisions are often delayed during project meetings. The Functional Manager retains the decision making authority, 2) Balanced Matrix – The Project Manager and Functional Manager have equal authority, this leads to potential conflict, 3) Heavy Weight Project Matrix – The Project Manager has decision-making authority, and the Functional Manager provides technical expertise, this structure is commonly used in organizations that practice Lean principles.

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