Page 81 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes The responsibilities of functional manager are:
(a) He decides how to do the work.
(b) He distributes the project work among his subordinates.
(c) He looks after the operational aspects.

3. Project Manager: The Project manager has authority over the administrative aspects of the
project. He has full authority over the financial and physical resources which he can use
for completing the project.
The responsibilities of project manager are:
(a) He decides what to do.
(b) He is responsible for scheduling the project work.

(c) He coordinates the activities of the different functional members.
(d) He evaluates the project performance.
4. Problem of Unity of Command: In a matrix organisation, there is a problem of the unity of
command. This is so, because the subordinates receive orders from two bosses viz., the
Project Manager and the Functional Manager. This will result in confusion, disorder,
indiscipline, inefficiency, etc. All this will reduce the productivity and profitability of the
project.
5. Specialisation: In a Matrix organisation, there is a specialisation. The project manager
concentrates on the administrative aspects of the project while the functional manager
concentrates on the technical aspects of the project.

6. Suitability: Matrix organisation is suitable for multi-project organisations. It is mainly
used by large construction companies that construct huge residential and commercial
projects in different places at the same time. Each project is looked after (handled) by a
project manager. He is supported by many functional managers and employees of the
company.

Task Explain the benefits of Matrix Organisation.

5.6.2 Advantages of Matrix Organisation

The benefits or merits or advantages of a matrix organisation are:

1. Sound Decisions: In a Matrix Organisation, all decisions are taken by experts. Therefore,
the decision are very good.
2. Development of Skills: It helps the employees to widen their skills. Marketing people can
learn about finance, finance people can learn about marketing, etc.
3. Top Management can concentrate on Strategic Planning: The Top Managers can spend
more time on strategic planning. They can delegate all the routine, repetitive and less
important work to the project managers.
4. Responds to Changes in Environment: Matrix Organisation responds to the negative
changes in the environment. This is because it takes quick decisions.

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