The matrix style of project management emerged in the 1970s as a result of ongoing efforts to improve organization structure and operations. A matrix organization uses a structure that has functional managers who are in charge of groups of employees who fill similar roles. The structure of such organizations caused managers to view this change as a threat to their area of ​​control. This results in what can be called unnecessary tensions between project managers and functional managers due to the need to perform different activities with the same set of employees.

Initially introduced to deal with the increasing complexity of projects in the aerospace industry, this project management structure has been adopted in many cases to deal with an organization’s internal and external problems. There are multiple advantages offered by this style of management. For starters, there is better coordination of shared resources and technologies between organizations. It also improves coordination and communication across the company, as well as increasing employee access to a wide range of skills. Matrix management works best when an organization has objectives that have been clearly defined and are properly cascaded to the objectives of the horizontal and vertical components within the matrix. Apart from these advantages, the matrix management style also has some significant challenges.

Segregation of the reporting structure to project managers and functional managers can lead to conflict and stress in the organization. These multiple reporting lines can cause people to not take responsibility for their work, which in turn can erode organizational culture. Such organizations are vulnerable to constant and repeated reorganization. The reorganization may disturb the normal functioning of the organization and its know-how.

We have also often noticed that matrix management focuses on short-term goals rather than long-term success. The root of this problem lies in the fact that there is no clarity about who is responsible for what and people also have no idea who to turn to for the information they need to solve a problem or make a decision. This not only causes immediate problems, but also leads to long-term problems. One of the other major challenges for the concept of matrix management is getting the “buy-in” of those affected. Matrix management is often considered another hot trend of the month, as it puts an emphasis on core competencies that employees are suspicious of management for. Companies are turning to matrix management as the standard for rebuilding organizations and this is evident in the demands of the market these days.