What is the matrix project management model? What are the advantages and disadvantages of this model?

The organizational structure of a business has a profound impact on the overall growth of the business, especially in increasing employee productivity and operational efficiency. One of the project management models used by businesses is matrix management.

1. What is matrix project management?

Matrix project management is a type of organizational structure in which employees report projects to multiple managers. This model eliminates the vertical management system and instead creates a system in which employees have multiple managers and change depending on different projects.

With a matrix management system, employees in different departments are allocated into project teams, where they can work with colleagues from other departments. For example, in a specific project team there may be employees from engineering, sales, and customer service departments.  

2. How does matrix project management work?

Typically, companies that apply a matrix project management model often operate by function, product/project or geographical location.

• Project/ Product

Each project will have a project manager along with groups of employees from different departments of the business. Thus, each employee will have at least two managers, the project manager and their department head. For example, a construction materials production project will include members from the production department, purchasing department, finance department, etc. Thus, a finance department employee will be under the management of the department head. finance and project manager.

• Geographical location

This form is often less common than project or product management. However, it can also be applied to companies with many branches or multinational companies. For example, if company A has offices nationwide, and one office in Hanoi, the human resources director will need to report on new personnel to both managers in Hanoi and superiors at headquarters.

3. Advantages of matrix project management  

3.1. Efficient use of resources

When different people from different departments work together, it helps solve problems more effectively, avoiding wasting resources compared to a dedicated project organizational structure. Additionally, this model leads to overall employee growth because they get additional exposure to new positions. This helps them acquire many soft skills as well as understand the work of other departments.

3.2. Enhance cooperation

A matrix project management structure enhances collaboration among employees within the organization and encourages employees to work together toward common goals.

3.3. Renew

Contrary to the old view, matrix management promotes innovation. Project teams include employees with diverse backgrounds who may look at problems in different ways. This helps infuse new thinking into the product or project development process.

3.4. Flexibility

Once a project is completed or scrapped, employees will be assigned to other tasks and projects. This avoids monotony and provides flexibility in employees' work.

4. Disadvantages of matrix project management

4.1 Unclear responsibilities

When a company applies a matrix project management model, employees will report to at least two managers, potentially causing ambiguity in responsibilities. Unlike traditional management, the department manager will be responsible for that department's shortcomings.  

4.2. The decision-making process is slower

With a matrix management system, decisions must go through at least two or more managers. This can significantly slow down the decision-making process and affect the speed at which work can be completed.

4.3. Conflicts easily arise

Members of a project team come from different departments, so there will be differences in culture, working style, and priorities, so disagreements can easily occur. Therefore, managers need to build a spirit of solidarity among members and should also develop a set of rules for their group.

Above is the theory of the matrix project management model as well as the advantages and disadvantages of this method. Hopefully after this article, managers can apply this model more effectively for their businesses. If you are interested in a software that helps manage documents and manage work, learn about 1C:Document Management solution immediately. Please follow 1C Vietnam to follow the next articles on project management topics.