Matrix management is a type of organizational management in which people with similar skills are pooled for work assignments. 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 project manager while working on that project. Therefore, each engineer may have to work under several managers to get their job done. For other uses, see Management (disambiguation). ... Look up engineer in Wiktionary, the free dictionary. ...

The matrix

Most organizations fall somewhere between the fully functional and fully projectized organizational structure. These are matrix organizations. Three points along the organizational continuum have been defined.^{[citation needed]}

• Weak/Functional Matrix – A project manager (often called a project administrator under this type of organization) with only limited authority is assigned to oversee the cross-functional aspects of the project. The functional managers maintain control over their resources and project areas. The project administrator’s role is to enhance communication between functional managers and track overall project progress.
• Balanced/Functional Matrix – A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. Proponents of this structure believe it strikes the correct balance, bringing forth the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing of power is a very delicate proposition. This is also the most complex organizational structure to maintain.^{[citation needed]}
• Strong/Project Matrix – A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources on an as-needed basis. Because project resources are assigned as necessary there can be conflicts between the project manager and the functional manager over resource assignment. The functional manager has to staff multiple projects with the same experts.^{[citation needed]}

A fourth organization type is as follows:

• Soft boundaries Matrix – Functional team members provide technical expertise and assign resources on an as-needed basis. Because project resources are assigned as necessary there is no need for project managers or a functional manager over resource assignment.^{[citation needed]}

Controversy

Proponents of matrix management suggest that there are two advantages to matrix management. First, it allows team members to share information more readily across task boundaries. Second, it allows for specialization that can increase depth of knowledge and allow professional development and career progression to be managed.^{[citation needed]}

The disadvantage of matrix management is that employees can become confused due to conflicting loyalties. A properly managed cooperative environment, however, can neutralize these disadvantages. In order for the system to work, all parties must be willing to talk to each other to learn what their different objectives and goals are.^{[citation needed]}

Matrix management can put some difficulty on the project managers because they must work closely with other managers and workers in order to complete the project. The functional managers may have different goals, objectives, and priorities than the project managers, and these would have to be addressed in order to get the job done.^{[citation needed]} A project manager is the person who has the overall responsibility for the successful planning and execution of any project. ...

One advantage of matrix management is that it is easier for a manager to loan an employee to another manager without making the change permanent. It is therefore easier to accomplish work objectives in an environment when task loads are shifting rapidly between departments.^{[citation needed]}

Visual representation

Representing matrix organizations visually has challenged managers ever since the matrix management structure was invented. Most organizations use dotted lines to represent secondary relationships between people, and software packages, such as Visio and PowerPoint support this approach. Until recently, Enterprise resource planning (ERP) and Human resource management systems (HRMS) software did not support matrix reporting. Late releases of SAP software support matrix reporting, and Oracle eBusiness Suite can also be customized to store matrix information. Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system. ... Human Resource Management Systems (HRMS, EHRMS), Human Resource Information Systems (HRIS), HR Technology or also called HR modules, shape an intersection in between human resource management (HRM) and information technology. ... SAP AG (ISIN: DE0007164600, FWB: SAP, NYSE: SAP) is the largest European software enterprise and the third largest in the world, with headquarters in Walldorf, Germany. ... Oracle Corporation (NASDAQ: ORCL) is one of the major companies developing database management systems (DBMS), tools for database development, middle-tier software, enterprise resource planning software (ERP), customer relationship management software (CRM) and supply chain management (SCM) software. ...

References

1. "A Guide to the Project Management Body of Knowledge (PMBOK®)", Project Management Institute, ISBN 1-880410-23-0
2. "Mentoring Soft Boundaries for Management", R J Shepherd, MIDAS MDF 2007;2:79-89