It was common in the 1960's and earlier for large corporations to be vertically organized by assigning divisions of employees to specific line or functional managers. Organizations that are restructured into project management teams are referred to as being matrix-managed.
Several different categories of matrix organizations exist. In each, the goal is to create a balance of power between each manager's particular functional needs. The primary types of matrices include: The Weak Matrix, Strong Matrix, and Balanced Matrix organizational structure. This article will cover the benefits and drawbacks of the strong matrix organization structure.
A Balanced Matrix Organization Structure
According to the old adage, absolute power results in absolute corruption. Because in every type of matrix structure a power struggle occurs, a method of balancing each group is necessary to avoid this problem. If this is not controlled, one group of managers will control the other group. This will be unhealthy for both the project and the overall organization, even if individual aspects of an organization or isolated projects may continue to succeed for a time. For example, a singularly controlling project manager might dominate a functional manager and force them to always relinquish the most valuable team members with which to complete the projects.
To have a suitable and effective solution to the inter-conflicting management problems between a Functional Manager and a Project Manager and to enable the organization to complete projects smoothly, it would be required to evolve a management system that would squarely define the sphere of control of each of the managers having regard to the functional requirements and overall project requirement by framing suitable rules. The rule may be based on the time schedule/ factor. For example, a rule clearly specifying that a worker should not be withdrawn or relocated by a project manager where the requirement of the department is not more than a week's time would suffice. The project manager however would have the controlling jurisdiction if it is for more than a week. Similarly a rule that would restrict a project manger in employing one worker for two projects concurrently may also be effective.
Structural rules and regulations can be adopted in several possible ways to gain an objective which is the balancing power between functional managers and a project in order to prevent win or lose conditions. Hence, the balance of power is derived from balanced matrix leading to a better structural format of the company.