Question 3 OR (b)

Project and matrix organisation; 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 (b) · 9 marks

Distinguish between project organisation and matrix organisation. What merits and demerits does project organisation have?

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

  • Distinguish…What…?Two asks in one question: answer both.
  • Distinguish 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 2½ marks 4 min
  3. 2 Distinction between them 2½ marks 4 min
  4. 3 Merits of project organisation 2 marks 4 min
  5. 4 Demerits of project organisation 2 marks 4 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; 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.

Distinction between project and matrix organisation

BasisProject organisationMatrix organisation
Suited toLarge, one-off projectsMany simultaneous projects needing shared specialists
DurationThe team lasts for the project; the arrangement may be temporary or permanentA lasting structure
MembershipMembers leave their departments and work under the project managerMembers stay in their departments and are assigned to projects as well
ConflictLess conflict of authorityFrequent conflicts between the two bosses
Resource useResources dedicated to one projectResources shared across projects
Chain of commandUnity of command; members report to the project managerDual command; members report to two managers
Authority of project managerFull authority over people and resourcesShared with functional managers
NatureSeparate, self-contained unit for a projectProject structure laid over the functional structure

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. Tension at the start and the end: releasing specialists to a project, and finding them work when it ends, can strain relations with the departments they come from.
  4. Duplication and cost: each project has its own specialists and facilities, which may be under-used.
  5. Hard to manage: engineers, accountants and designers on one team bring their own working habits, and with no shared yardstick it is hard to tell who is doing well.
  6. Insecurity of members: people worry about their jobs and careers when the project ends.

Where the 9 marks sit

#ComponentMarks
1Project and matrix organisation explained2.5
2Distinction between them2.5
3Merits of project organisation2
4Demerits of project organisation2
Total9
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