FUNCTIONAL AND MATRIX ORGANIZATION

Presented By:BHAVANA. A ROHIDEKARMANSI PANJANI

FUNCTIONAL ORGANIZATION: A functional organization structure is a classical hierarchy in which each

employee has a single superior.

Employees are then organized by specialty and work accomplished is generally specific to that specialty.

Communication with other groups generally occurs by passing information requests up the hierarchy and over to the desired group or manager.

Of all the organizational structures, this one tends to be the most difficult for the project manager.

The project manager lacks the authority to assign resources and must acquire people and other resources from multiple functional managers.

In many cases, the project's priority is viewed lower than operations by the functional manager.

In these organizations, it is more common for the project manager to appeal to the senior management to resolve resource issues.

STRUCTURE:

Serial No.

ADVANTAGES DISADVANTAGES

1. Specialization Double Command

2. Better Control Problem of Succession

3. Reduction of work load Delay in Decision Making

4. Higher efficiency Complexity

5 Flexibility Lack of Coordination

6. Easier Staffing Expensive

ADVANTAGES AND DISADVANTAGES:

MATRIX ORGANIZATION: A matrix organization is a blended organizational structure.

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.

Matrix organizations can be further divided into weak, balanced, and strong matrix organizations. A weak matrix gives more authority to the functional manager (FM), whereas the strong matrix gives more power to the PM. As the name suggests, the balanced matrix balances power between the FM and the PM.

The difference between the three is the level of authority given to the project manager (PM).

STRUCTURE:

ADVANTAGES AND DISADVANTAGES:

Serial No.

ADVANTAGES DISADVANTAGES

1. Single Project Focus Complex relations

2. Highly Flexible Project Group not homogenous - Low

morale

3. Effective Command No unity of Command

4. Better Utilization of Services High concentration on respective

functions - Conflict

DIFFERENCE BETWEEN FUNCTIONAL AND MATRIX ORGANIZATION:

  Functional Weak Matrix

Balanced Matrix

Strong Matrix

Description Traditional organization with a direct supervisor.

The PM and FM share responsibility, with the FM having more authority.

The PM and FM share responsibility, with each having equal authority.

The PM and FM share responsibility, with the PM having more authority.

Authority of project

manager

Very low. Low. Low to medium.

Medium to high.

Resource availability

Very low. Low. Low to medium.

Medium to high.

Project manager

involvement

Part-time. Part-time. Full-time. Full-time.

Advantages The FM holds accountability for the project.

The PM gets some authority to manage the project.

The PM and FM share the responsibility of the project.

The PM gets more authority to assign resources and manage the project.

Disadvantages

The PM holds little or no authority.

The FM can see the PM as a threat and cause conflict.

The PM and FM can be confused about who manages what.

The FM may feel out of the loop.

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