Question 3 OR (a)

Project and matrix organisation; suitability, merits and demerits of project organisation

9 marks

Time to write
About 18 minutes
Topic
Organisational design and structures
Notes
Crux notes

Question

Question 3 OR (a) · 9 marks

Differentiate between Project and Matrix organization. Explain the suitability of project organization, and its merits and demerits.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • Differentiate…Explain…Two asks in one question: answer both.
  • Differentiate betweenSet the differences out in a table, basis by basis, not as two separate essays.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Project and matrix organisation explained; differences 4 marks 7 min
  3. 2 Suitability of project organisation 1½ marks 3 min
  4. 3 Merits of project organisation 1½ marks 3 min
  5. 4 Demerits of project organisation 2 marks 3 min
  6. Check: every ask answered, key terms underlined 1 min

Short on time? Trim steps 1–4 evenly rather than skip one: each is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Project organisation

A project organisation is a structure created to complete a specific project: a task with a definite objective, budget and deadline, such as building a plant, launching a product or installing a computer system. A project manager is appointed and given full authority over the project. The team answers to the project manager rather than to the functional heads. What happens when the work is done depends on the firm: a construction company that always has the next site waiting keeps its project teams as a lasting part of its structure, while a firm that rarely runs projects simply breaks the team up and sends people back.

Picture itProject and matrix organisation; suitability, merits and demerits of project organisation

1Drawn from every department, the project team huddles over one drawing.

Project organisationThe team answers to the project manager rather than to the functional heads.

2Ajay at his desk, a file arriving from each side: the project boss and the department boss.

Matrix organisationThey therefore have two bosses.

Matrix organisation

A matrix organisation superimposes a project (or product) structure on an existing functional structure. Members remain in their functional departments (engineering, finance, marketing) while also working on one or more projects. They therefore have two bosses: the functional manager, who looks after technical standards, staffing and careers, and the project manager, who directs the project's work, schedule and budget. It is a permanent, two-dimensional structure.

Difference between project and matrix organisation

BasisProject organisationMatrix organisation
Where members belongThey leave their departments for the projectThey stay in their departments and join projects as well
Whom they report toThe project manager onlyTwo managers, functional and project
Project manager's sayDecides on people and resourcesHas to agree them with functional managers
People and equipmentTied to one projectMoved between projects as needed
Clashes over authorityFewCommon, between the two managers
How long it lastsAs long as the project, unless the firm keeps project teams permanentlyBuilt to last
How it sits in the firmA unit standing on its ownA layer laid across the functional departments
Best forOne large, self-contained projectMany projects running at once that share specialists

Suitability of project organisation

It suits work that is large, complex and unique, with a definite end, tight time and cost limits, and a need for close coordination among specialists: for example, construction of a dam or metro line, an aircraft or defence development programme, setting up a new plant, an election process, or a major software implementation. It is also suitable when the project is important enough to justify dedicated people and resources.

Merits of project organisation

  1. Clear authority and accountability: one manager is responsible for the whole project.
  2. Focus: the team concentrates on one objective, schedule and budget.
  3. Better coordination: all specialists work under one head and in one place.
  4. Speed: decisions are quick, as they are taken within the project.
  5. Flexibility: teams are formed for a task and wound up or moved on when it is done.
  6. Development of managers: project managers gain broad general-management experience.

Demerits of project organisation

  1. Unsuitable for small or routine work.
  2. Loss of technical depth: specialists away from their departments may fall behind in their fields.
  3. Conflict with functional departments over people and resources.
  4. Worry as the end nears: as a project winds down, members wonder where they will go next, and good people may leave before the work is finished.
  5. A mixed team to lead: engineers, accountants and designers judge good work in different ways, so one manager finds it hard to set common standards.
  6. Paying twice for the same skills: every project needs its own specialists and equipment, some of which stand idle between busy spells.

Where the 9 marks sit

#ComponentMarks
1Project and matrix organisation explained; differences4
2Suitability of project organisation1.5
3Merits of project organisation1.5
4Demerits of project organisation2
Total9
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