How does a matrix structure combine functional expertise with project management?

"The matrix structure (also called the project management approach) is sometimes used in conjunction with the traditional line-and-staff structure in an organization. Essentially, this structure combines two different forms of departmentalization, functional and product, that have complementary strengths and weaknesses. The matrix structure brings together people from different functional areas of the organization (such as manufacturing, finance, and marketing) to work on a special project. Each employee has two direct supervisors: the line manager from her or his specific functional area and the project manager. Exhibit 7.7 shows a matrix organization with four special project groups (A, B, C, D), each with its own project manager. Because of the dual chain of command, the matrix structure presents some unique challenges for both managers and subordinates. Advantages of the matrix structure include teamwork, efficient use of resources, flexibility, the ability to balance conflicting objectives, higher performance, and opportunities for personal and professional development. By pooling the skills and abilities of various specialists, the company can increase creativity and innovation and tackle more complex tasks. Project managers use only the specialized staff they need to get the job done, instead of building large groups of underused personnel. The project structure is flexible and can adapt quickly to changes in the environment; the group can be disbanded quickly when it is no longer needed. The customer wants a quality product and predictable costs. The organization wants high profits and the development of technical capability for the future. These competing goals serve as a focal point for directing activities and overcoming conflict. Employees working on special project teams may experience increased feelings of ownership, commitment, and motivation. The project structure gives individuals the opportunity to develop and strengthen technical and interpersonal skills. Disadvantages of the matrix structure include power struggles, confusion among team members, and lack of cohesiveness. Functional and product managers may have different goals and management styles. Reporting relationships and job responsibilities may be unclear. Team members from different functional areas may have difficulty communicating effectively and working together as a team. Although project-based matrix organizations can improve a company’s flexibility and teamwork, some companies are trying to unravel complex matrix structures that create limited accountability and complicate day-to-day operations. Some CEOs and other top managers suggest that matrix structures make it easier to blame others when things don’t go as planned."