In a matrix organization, each project manager reports directly to the vice president and the general manager. Since
each project represents a potential profit center, the power and authority used by the project manager come directly from
the general manager.
Information sharing is mandatory in such an organization, and several people may be required for the same piece of
work. However, in general, the project manager has the total responsibility and accountability for the success of the project.
The functional departments, on the other hand, have functional responsibility to maintain technical excellence on the project.
A department manger whose prime responsibility is to ensure that a unified technical base is maintained and that all available
information can be exchanged for each project heads each functional unit.
The basis for the matrix organization is an endeavor to create synergism through
shared responsibility between project and functional management. Other advantages of a pure matrix organizational form, to
project management, include:
Because key people can be shared, the project cost is minimized
Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved
There is a better balance between time, cost and performance
Authority and responsibility are shared
Stress is distributed among the team