Tuesday, July 26, 2011

Project Organization and Matrix Organization

Project Organization

Project organization establishes for a short span of time, which exist only during the project inception till its completion. In the project organization various project managers are taken from different departments, they work efficiently and after the completion of the project they get back to their own work or they start up with the new project (Harrison, & Lock, 2004). All the project participants have to work according to the organization strategy. It is developed to achieve some of the important projects like disaster recovery, bringing new technology, special projects requires advices of different expertise.

Advantages of Project Organization

Project organization helps in the efficient achievement of the project goals as all the project members have specialized knowledge. It is beneficial to those specialists who cannot work with the structured environment; through project organization they can show their creativity and apply their knowledge. It is very adaptive approach, because of changing Environment, company needs specialists who can cope up with that and achieve their goals. (Cleland, & Ireland, 2006).

It requires less time and cost as it is of temporary in nature and remains during the project only. Project organization enables the specialists to learn new things, increase knowledge, and interaction with other departments. It is helpful in developing the participative and professional management in the organization and also develops healthy relations among various departments.

Matrix Organization

Matrix organization includes various forms of organization structure which is formed by dividing the departments into various functions and each function is headed by the functional manager or the project manager. It is the structure in which the project participants has to report daily to their project manager whose authority flows horizontally and simultaneously they have to report to their department head whose authority flows vertically (Edwards, & Bowen, 2005). It also requires the specialists of various departments who work on the common project. It is the hierarchal structure which is formed by consolidating the various departments and achieves the targets of the project.

Advantages of Matrix Organization

In the matrix organization managers can take sound and effective decision as it is taken by the experts, with the help of the experts, organization can use its resources optimally and efficiently. Through the matrix organization the people who are involved in the project can develop their skills and knowledge other than their specialization. The managers at the top level can concentrate on their organizational strategies as they delegate their work to the lower level managers (Eekhout, 2008). With the help of the matrix organization structure the company can cope up with the changing environment as it involves the expertise in doing the project.

Due to the various members are involved in the structure it leads to the integrity of various department members and also motivates them to do work with full dedication. The project members have to report on the daily basis to the department head as well as project head; it will generate better coordination and communication in the organization. Due to the members from different specialization are involved it leads to higher efficiency at the lower cost with minimum time involvement (Johnson, 2008).

Cleland, D.L., & Ireland, L.R. (2006). Project management: strategic design and implementation (5th ed.). US: McGraw-Hill.
Edwards, P., & Bowen, P. (2005). Risk management in Project Organization. Australia: UNSW.
Eekhout, M. (2008). Methodology for product development in architecture. Netherland: OS Press.
Harrison, F.L., & Lock, D.(2004). Advanced project managemant:A structured approach (4th ed.). England: Gower publishing.
Johnson. (2008). Exploring Corporate Strategy. UK. Pearson.