Matrix Organizational Structure - History and Styles

Until the 1970’s, normal, big organizations had tendency to operate in “silos”, rational divisions where basically separated groups of workers would report to a line manager or functional manager. Matrix systems emerged as an effort to restructure these inefficient organizational structures to support more efficient project-based management.

Functional Organizational Structure

Big organizations used to operate in “silos”, rational divisions where basically isolated groups of workers reported to a line or functional manager. Imagine columns on a page with a line manager above each column and a group of workers inside each column under the manager of the division.  As these groups operated independently, it was not unique to discover functions replicated in each silo.

In an Information Technology organization, for instance, you might discover software programmers in the sales office, some more in the accounting department, and still more in corporate headquarters, because each of these functioning units have a programming demand.

Matrix Organizational Structure

And so it was, in the 1970s, that efforts to better conventional, or functional, organizational structures, led to the introduction of the “Matrix” organizational system.

In the matrix organization structure, considering our IT instance above, all programmers are now in a distinct programming department.  They report to a functional manager in charge of programming.  The manager of that department is completely in charge their jobs. In a matrix, we normally relate to the line manager as a functional manager because all of their workers execute related functions.

Workers in a matrix organization structure are compartmentalized by the skills required of them into silos, like columns in a matrix, each with its committed manager. The workers report to and are accountable to their functional manager, who in return normally has lone obligation for the progress of their workers and also the management of their region, including budgeting.

So far, the matrix organization structure sounds quite a bit like the functional organization structure, with the exception that all workers within a silo (a column in the matrix) are divided by a specific skill-set.  The next difference between functional organizations and matrix organizations is that matrices have rows (lines running across the columns).

Traditional organizations operated rather easily, but were ineffective, with duplication of skills and distinct, but redundant, processes around the organization. But their chief failing was when they tried to handle projects.

The trouble was that with functional organizations, cross functional projects did not exist, because the project manager’s “team” team made up of individuals from various functional areas, managed and controlled by various functional managers — not by the project manager.

So we have our columns of functionally related workers in each row of our matrix, with a functional manager as the chief of each column.

Matrix Organization StructureNow imagine these rows each having a project manager as its “chief” of each group of workers. The rows intersect the columns and then intersect the columns of workers. So each row is a silo of workers with different functions with a project manager in charge.

In such a matrix system there is an apparent stress between the project managers at the top of each row (each plan) and the managers at the head of each column (each functioning region) as they are sharing the same workers, and as each manager (project and functional) has a work to do, we get a dispute of stake.

There are distinct types of matrix system, designed to balance the ability struggle-struggle between the managers conflicting needs. The principal types are these matrix organizations is listed below.

Weak Matrix

This type of matrix organization structure is nightmarish for Project Managers.  In the weak matrix organizational structure, project managers are effectively reduced to being project facilitators. They draw plans and supervise the execution, but they have no genuine control over personnel, and are nearly completely reliant upon the functional managers to offer resources.

The workers have less allegiance to the project managers (or the plan), because it is the functional managers who determine the progress of the workers. And the workers’ progress is normally measured solely on the work that is done for their functional manager — not on their project work — thus it is a fact that working on a project may be seen by the worker as not desirable as they will have less time in doing their functional work, so the project manager may see them as unmotivated.

And as the PM has no genuine control over the project members, so they frequently have to report the problem of workers not doing their duties, to the functional managers in anticipation that they will motivate to  the workers to perform more on the project.

But recall that the functional managers are primarily accountable for the operation of their own  areas, so their workers performing plan tasks can really cut the productivity of their region (frequently projects are ignored in the benchmarks. So this leads to a clear-cut dispute of stake between the PM, the functional managers and the respective workers.

In this position the PM normally loses — and that’s the simple to recall it — the PM is feeble in a feeble matrix.

Strong Matrix

All these problems led to the introduction of the “strong matrix” organization structure

In the strong matrix organizational structure, the tables are reversed from the weak matrix organization structure. The intent is that project managers that are responsible for the workers, rather than the line managers. But the project managers are not accountable for the human resource management.

This gives project managers the power to handle the workers directly, and therefore adequately handling the entire project, but without involving the project managers upward in HR administration.

I have worked in organizations of this manner, where I managed my groups and was accountable for everything with the exception of the HR functions, and I establish it a really rewarding surrounding from a project level of opinion. So my groups would have me as project manager and I had  the lone authority and obligation to direct their work, but they also had staff managers who took care of anything that was not project-related, i.e. performance reviews (but I made provision the important input to these) training, holiday management, contracts for employments etc. Therefore it was possible for me to focus on project management.

So, when a manager for a project starts a new one, they discuss their staffing demand with the functional managers and the functional managers seek to have the resources accessible (and offer education for them, where needed). Normally, the functional managers will sketch out plans and charts (e. g. Gantt charts) of how “their folk” will be included inside projects, and they might move personnel between projects and project managers as required (after making inquiries with the project managers.

Effectively the PM and the project managers work jointly, but the whole command of everything project-related is the role of the plan manager– then in a powerful matrix, the plan manager is the stronger company.

Balanced Matrix

There is an old saying, “power corrupts, and absolute power corrupts absolutely.” In each variation of the matrix organization structure there is a battle for control, hence power.  There needs to be some manner to bring each into equilibrium, otherwise one group will rule the other, to the disadvantage of the project, and finally to the detriment of the organization all together (although private projects or functional areas may bloom for sometime). A really dominant project manager, for instance, might bully functional managers into always giving them the best team members for their projects.

One way to reduce these difficulties is to have rules within the organization that varies who can handle a worker, depending upon sure circumstances. For instance, there could be a regulation that says if a worker is to work on a project for less than one week the functional manager (or project manager) has lone command over the worker, but if the demand is for longer than one week, command changes hand. Or there may be rules that the same worker cannot work for same project manager, on two back-to-back projects.

There are many potential rules that could be made, but the goal is to equalize the power between the project managers and the functional managers so as not to have a win/lose position. This is why this matrix organization structure is referred to as a “balanced matrix”.

So whether the organizational structure is feeble, powerful, or stable, the “power” is always from the standpoint of the project manager.

February 10th, 2008 by admin in Project Management | No Comments

What is a Project Manager?

What is a Project Manager?A project manager, quite simply defined, is an individual who is responsible for the entire project. He or she is not responsible for completing every task. Indeed, it is unlikely that the manager would even have every skill needed to complete all the work. He or she is simply the final decision maker. This person will usually be considered responsible for the success or failure of a project, unless other reasons for the outcome are blatantly obvious.

What skills, then, are actually needed by a successful manager? One critical skill is that of being an effective team leader. An inquiring mind is also quite a useful asset. One must be capable of gathering information from necessary sources, and to quickly organize the information to successfully make predictions and good business decisions. All these skills are needed to plan and implement a project. An extensive amount of planning and evaluation is necessary. Those who do not plan and schedule very well should consider another career.  Moreover, because a manager sometimes must share the plan with customers and persuade them that the idea is a good one, he or she also requires excellent presentation skills.

After decisions have been made, the manager needs the vision and impartiality regarding the overall progress of the plan, makes necessary adjustments, and keeps the team motivated and focused — while concurrently meeting budget and time constraints. To be decisive does not mean continuing to pursue a direction that is not working. Constant vigilance in quality assurance is integral to the success. Because quality is a product of teamwork, it needs to be incorporated in the planning and scheduling process of the overall project. Nearly all ineffective actions should be completely or almost completely eliminated through effective planning.

The project manager also must keep in mind project goals and to define a plan and manage change. Project goals, as well as plans for achieving them, must be developed. The processes must be managed without allowing the scope to range beyond project goals. Risks must be identified, and contingency plans must be available in case they are needed. Any changes in the scope of projects must be determined, costs estimated, and documented in writing with the client.

Evaluation of a team’s assets and liabilities is essential to good leadership. The good project manager will also be able to use this knowledge to achieve the most successful results from his or her team. Diplomacy combined successfully with assertiveness, rather than aggressiveness, is a useful combination of skills. Clear lines of communication to the team and among team members are important. It should be noted that, while maintaining the schedule is the manager’s responsibility, team members should have input into developing this schedule.

The Project Management Institute, or PMI, was created in 1969. The intent of this organization was to ensure successful project managers attained necessary skills to be successful. Therefore, in 1981, the directors created standards and guidelines for this career path. Known as the PMBOK, this is a guide for the body of knowledge for project management. Reviewed often, this authority should be studied by those who desire to pursue a successful career as a project manager.

February 5th, 2008 by admin in Project Management | No Comments

Project Management vs. ITIL Release Management

Danielle Baker had an interesting post over on PMHut about Project Management vs. ITIL release management.

It seems that quite a few people are confused by the distinction. In fact, I’ve even noticed that senior IT folks don’t understand the difference between implementing a PMO, an SDLC, or implementing ITIL. I guess most C-Level’s just want to make sure they can check off all the buzzwords in the weekly “buzzword bingo” meeting with one another.

“Hey Bob, we got ITIL goin’ on over there?”

“Yeah, Steve, we’re all over that one… Check!”

“Okay, Bob, How about some of that there PMO? I heard that’s purty powerful good stuff…”

“Sure, Steve, we’re bought two of those, in case the first one goes down…”

“Swell, Bob, that’s great,we have hot-swappable PMO’s in case our UPS doesn’t engage fast enough — you can’t be too safe…”

Anyway, enough jabbing of the elite by us in the proletariat. What’s the real difference between Project Management and Release Management?

Here, I’ll summarize it for you. Projects happen once. Releases keep happening. As a result, you need a slightly different way to manage each.

As an example, a full “project” may entail a number of releases. But then again, each release could be it’s own project.

I’m sure it’s all better now… or maybe you should read the article at PM Hut. ;-)

February 3rd, 2008 by admin in Uncategorized | No Comments

Construction Project Management Fundamentals

Project management is the art of organizing and managing resources in an efficient method which completes the project at hand in the way it was intended. A project is a temporary task which creates either a product or service, so managing each individual one is a unique process. It’s important to recognize all the dimensions needed to complete a project and act on them in an orderly fashion.

Construction project management differs from the general term of project management in the way that construction project management specifically refers to organizing a project regarding the area of construction. Also, much of construction project management is done digitally through software to ensure that nothing is left out. This works because sometimes it’s easy for a project manager to forget a thing or two when he or she is stressed out from the time limits or budgets given.

Project management software helps individuals in keeping track of a complicated project which might easily become confusing if all the components are not kept organized. Things that need to be taken into consideration are appointments, communication, resource allocation, and more. Even people like subcontractors and employees need to be thought of and remembered to check up on their work progress and receive pay. People also use the software to make sure that various deadlines are met and that the overall project is completed on time, and that the many requirements previously calculated in construction estimating like staying in budget are met.

If you are interested in doing some research or feels that construction project management software if needed in your job, then looking at online construction software websites which rates different types of software according to requirements is a good first step. Once you know which construction project management software is right for you, then purchasing is the next step. However, if you’re thinking of starting a business, then perhaps your very first concern should not be construction project management. The step before finding project management software is acquiring a good construction estimating software, and there are plenty of websites regarding that as well out on the internet.

With a little bit of luck and some useful software to aid you in your company, it’s time for you to succeed.

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January 28th, 2008 by admin in Construction Project Management | No Comments

Picking the Best Project Management Software for You

Project Management SoftwareAre you in the market for project management software? Do you want to make sure that you invest in the most relevant project management software for your business’s needs? If so, you may be confused on how to pick the best project management software on the market. Here, we’ve developed a quick guide to help you figure out which of the many products available will suit your needs.

Price Points

Not surprisingly, project management software comes in a wide range of prices. You can head to your local office supply store and purchase project management software for very little money; on the other hand, you can pay a project management software representative to come to your home or office to teach you a very complicated (and more expensive) project management software system. Knowing your budget will help you decide which project management software will be reasonable.

Needs versus Wants

Decide on paper (it’s easier that way) what you need versus what you want in a project management software package before you set off on your investigation of different types. For instance, do you need something very basic that’s perfect for a smaller operation? Or are you looking for something more complex that can be used by all of the project managers in your 500+ employee corporation? Do you “need” a project management software package that is easy-to-learn and just “want” one with networking capability? Keep in mind that “needs” are non-negotiable, whereas “wants” are optional.

Complexity

Project management software comes in a wide range of complexities; hence, you need to know how much you’ll realistically use. It’s great to have a project management software package with all the proverbial “bells and whistles” in the world, but all those additions will be a waste if you never use them. Be practical and you’ll be able to make a wise, cost-effective, efficient project management software choice.

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January 25th, 2008 by admin in Project Management Software | No Comments

Online Project Management Courses - Organizing Success

Online Project Management Courses are a practical and efficient way to build and develop the crucial skills you need to manage projects successfully. Effective project management is essential to the smooth running of every business and organisation, and having good project management skills will make you a valuable asset to any employer.

With an online project management course you can take full control of your learning experience. Unlike other forms of learning, online study gives you the freedom to work through your course as and when you please, so you can improve your career prospects with the minimum of disruption.

Project Management - The Basics

Project management is a complex and fascinating subject, and understanding what it involves will give you a broad range of skills that you can take with you to almost any sector of business or industry.

Some of the main aspects of project management include:

  • Project initiation
  • Project planning and quality
  • Risk, health and safety
  • Project costs and budgets
  • The project team
  • Contracts, procurement and closure
  • Time and resource management

With an online project management course you’ll learn more about all these crucial factors and how you can use them to your advantage to get the very best out of every project you manage.

Online Project Management Courses

Online project management courses are an effective and inexpensive means of learning the theory and practice of modern project management. As there are no lectures to attend and no physical course materials involved in the course, there are none of the usual extra expenses that are normally associated with further study.

So if you’re thinking of gaining useful new skills that will enhance your career prospects and increase your worth in the eyes of future employers, online project management courses will help you realise your goals. Whatever your career ambitions are and no matter where your talents lie, a distance learning Management Course is a great way to harness your abilities and maximise your potential.

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January 24th, 2008 by admin in Online Courses | No Comments