Matrix management is not without its problems. The organization is quite complex in comparison to the functional or pure project types of organization. Since the resources are shared, people working in this type of organization also share their bosses. This increases problems in communications, and many more management skills are required to make it all work.
These problems are offset by the flexibility that is achieved. The matrix organization is able to respond quickly and correctly to the needs of the customer in a proper fashion. The project team has greater focus on the customer's needs. Good project direction and participative management lead to high motivation and a sense of achievement and recognition on the project team.
Moving from a functional organization to a matrix organization may take two to three years in some organizations. This is necessary because it takes time to move the functional managers out of their positions and into other productive areas. If movement from functional organizations to matrix organizations is too fast, the result can be chaos and the loss of important personnel. The objective must be to create the impression that people are going to be promoted to other positions and not that their position is going to be degraded. The functional managers in the existing organization are the major assets of the company and must not be lost.
These problems are offset by the flexibility that is achieved. The matrix organization is able to respond quickly and correctly to the needs of the customer in a proper fashion. The project team has greater focus on the customer's needs. Good project direction and participative management lead to high motivation and a sense of achievement and recognition on the project team.
Moving from a functional organization to a matrix organization may take two to three years in some organizations. This is necessary because it takes time to move the functional managers out of their positions and into other productive areas. If movement from functional organizations to matrix organizations is too fast, the result can be chaos and the loss of important personnel. The objective must be to create the impression that people are going to be promoted to other positions and not that their position is going to be degraded. The functional managers in the existing organization are the major assets of the company and must not be lost.