Page 82 - DMGT521_PROJECT_MANAGEMENT

Unit 5: Functions of a Project Manager

5. Specialisation: In a matrix organisation, there is a specialisation. The functional managers Notes
concentrate on the technical matters while the Project Manager concentrates on the
administrative matters of the project.
6. Optimum Utilisation of Resources: In the matrix organisation, many projects are run at
the same time. Therefore, it makes optimum use of the human and physical resources.
There is no wastage of resources in a matrix organisation.
7. Motivation: In a matrix organisation, the employees work as a team. So, they are motivated
to perform better.
8. Higher Efficiency: The Matrix organisation results in a higher efficiency. It gives high
returns at lower costs.

5.6.3 Limitations of Matrix Organisation

The demerits or disadvantages or limitations of a matrix organisation are:
1. Increase in Work Load: In a matrix organisation, work load is very high. The managers
and employees not only have to do their regular work, but also have to manage other
additional works like attending numerous meetings, etc.
2. High Operational Cost: In a matrix organisation, the operational cost is very high. This is
because it involves a lot of paperwork, reports, meetings, etc.

3. Absence of Unity of Command: In a matrix organisation, there is no unity of command.
This is because, each subordinate has two bosses, viz., Functional Manager and Project
Manager.
4. Difficulty of Balance: In a matrix organisation, it is not easy to balance the administrative
and technical matters. It is also difficult to balance the authority and responsibilities of the
project manager and functional manager.
5. Power Struggle: In a matrix organisation, there may be a power struggle between the
project manager and the functional manager. Each one looks after his own interest, which
causes conflicts.
6. Morale: In a matrix organisation, the morale of the employees is very low. This is because
they work on different projects at different times.
7. Complexity: Matrix organisation is very complex and the most difficult type of
organisation.
8. Shifting of Responsibility: If the project fails, the project manager may shift the
responsibility on the functional manager. That is, he will blame the functional manager
for the failure.

Notes In matrix organisation, a project manager is appointed to coordinate the activities
of a project. Personnel are drawn from the various functional departments.

5.7 Project Team and Human Factors

The real critical success factor of any implementation project is the ability to break through
“fixed ideas.” The extent to which this can be done will have a decided impact not only on the

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