Organization Structure: Matrix Organization

In a matrix organization, the resources report to the functional managers and are managed by the project managers as well. There might even be a function that represents all the project managers in the organization, which provides project management expertise.

The matrix structure has three variants commonly referred to as weak, balanced, and strong. In a weak matrix, the authority of the project manager is the weakest, and strongest in a strong matrix structure.

The titles given to project managers in functional or weak matrix organizations are project expeditor or project coordinator. They would be called project managers in a balanced or strong matrix structure and have slightly more authority over the time of the team members.

The advantage of the matrix structure is that resources can be optimally utilized, while preserving the capacity of the project managers to get projects executed efficiently. Resources can specialize in their functions and have stability in their careers, also contribute to the projects at the same time potentially.

The disadvantage of matrix organization is that the communication overhead increases significantly. This is because every resource in the organization belongs into a project and into a function, leading to a dual reporting structure.
In a matrix organization, project management happens at Project Resource Level.