Matrix Organizational Structure – A Quick Guide

It’s recommended to have an organizational structure in place to accurately define the activities in a project. Projects have many activities, from task allocation to budgeting and everything in-between. Therefore, that organizational structure shouldn’t be rigid, but efficient, flexible and possibly innovative.

Every organization is structured in some way, and that structure is determined by the organization’s objectives. The way you structure an organization is going to offer a standard for operating procedures and routines. It will also determine who participates in what, and what project tools are best for the job at hand.

Matrix organizational structure is often used in project management because it speaks to both the product of the project and the function of the management producing it. Let’s take a closer look at this type of organizational structure to determine its pros and cons in project management.

 diagram illustrating what matrix organizational structure is

What Is Matrix Organizational Structure?

The matrix organizational structure is a combination of two or more types of organizational structures. The matrix organization is the structure uniting these other organizational structures to give them balance. Usually, there are two chains of command, where project team members have two bosses or managers.

Often, one manager handles functional activities and the other is a more traditional project manager. These roles are fluid and not fixed, as the balance of power between these two kinds of managers isn’t organizationally defined.

It will employ the best of both structures and management styles to strengthen strengths and make up for weaknesses. This way, if an organization is working on producing two products or services at the same time, they can organize both and use that duality to their advantage through the matrix organizational structure.

Origins of the Matrix Organizational Structure

The matrix organizational structure came about as a business response to the rise of large-scale projects. They needed fast-track technology applications and required the ability to process great amounts of data in an efficient manner. Project organization was needed to respond quickly to interdisciplinary needs, without upsetting the functional organizational structures already in place.

Matrix organizational structures were first developed in the aerospace industry in the U.S. as projects grew in complexity during the mid-century. Until that point, they had been using a single hierarchical organization, which was fine when there was only one very large project.

However, with more and more projects having a variety of sizes and complexities, there was a need for expanding beyond one discipline. So, as time went on, the use of one discipline to structure a project become increasingly rare. But there remained a need for a single source of information and responsibility for each project. Therefore, instead of creating many autonomous projects, a matrix of projects was developed.

Managing more than one project requires robust project management software. ProjectManager has an overview section that includes portfolio roadmaps. This Gantt view lets you see all the projects in your portfolio on one page to better strategized how to allocate resources. Customize the roadmap to show just what you want to see. Filter for a specific date range or track only the work of one project manager. Get better organized today by trying our tool for free. 

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Customize your roadmap view in ProjectManager and track only what you want to track.

Pros and Cons of a Matrix Organizational Structure

A matrix organizational structure is not a one-size-fits-all solution. There are advantages and disadvantages that need to be understood to know if it’s the right one for the organization.


One of the biggest pros of using a matrix organizational structure is that it allows the sharing of highly skilled resources between functional units and projects. Communications are open, which helps knowledge move throughout the organization with less obstruction. Because the matrix organizational structure fosters better communications, it makes the normal boundaries between groups more porous, which allows for more collaboration and an integrated, more dynamic organization.

This structure can serve as a great boon for employees who are looking to widen their experience and skill sets. They can be part of many different aspects of various projects. It puts them in an environment that facilitates learning and gives them an opportunity to grow professionally.

Plus, the functional departments have highly skilled people, and those people are available to help the project team if needed. This creates a pool of valuable resources that can be dipped into and provides more flexibility to resolve issues without having to source new resources.

Furthermore, efficiencies are enhanced, and teams remain loyal because the structure provides a more stable environment where job security is strengthened. People work harder and have more buy-in to projects when they feel the rug isn’t going to get pulled out from under them.


There can be some confusion when a team member is subject to two managers. That can also create unnecessary conflict. This is especially true if both managers have equal authority.

Then there is the functional manager and project manager. There can be some sparks flying between these two managers in terms of what they believe to be the authority in the organization. That confusion can show up with team members, too, if their roles and responsibilities aren’t clearly defined. And that confusion can lead to conflict if resources are hard to come by and competing managers are fighting for them.

There are a lot of managers in a matrix organizational structure, which is not to everyone’s liking. And there can be a financial downside to that too. Having more people in managerial positions is going to have an impact on the organization’s bottom line.

Team members can feel the strain of working in a matrix organizational structure, in that their workload can be heavy. Often, they’re tasked with their regular assignments and then additional work, which can lead to burnout or some tasks being ignored.

Finally, there’s the overall expense of the matrix organizational structure. This goes beyond having multiple managers but also the added expense of keeping on resources that might not be used all the time.

Note that some of these disadvantages can be overcome. They just require being cognizant of the stress points and working more cooperatively towards relieving them.

Project management software can help you work better together by giving transparency to your project. ProjectManager has kanban boards that show managers their team’s workflow without getting in their way. They can see where there will be potential blocks in production and thereby allocate resources to keep the channels open. Other resource management features, such as a workload chart, keep the team’s tasks balanced. That’s good for morale and productivity.

kanban card being dragged and dropped into next column on the board
Find the stress points in your project and resolve them with ProjectManager’s board view.

Why Use a Matrix Organizational Structure?

The matrix organizational structure is an answer to the problem of managing large and complex projects. When working on a large project, a highly hierarchical structure can be an obstacle in the path of moving that process forward successfully.

Instead of trying to find a workaround to a situation that might not have a viable solution, a matrix organization structure provides a new system that can more properly address the complexities of large projects.

The problem of having the function and skills fragmented in an organization makes it more difficult to handle large projects successfully. It’s harder with this type of top-down organizational structure to have a holistic view. The perspective at the top is distorted, while a matrix organizational structure can see a problem from a closer standpoint and have varied approaches to solving it.

The matrix organizational structure is more catholic in that it acts as if there is not a single best way to organize a project. It sees alternatives rather than one established way forward.

ProjectManager Can Run a Matrix Organizational Structure

Given the complexity of a matrix organizational structure, it’s critical to have the right tools to make sure team members are receiving their tasks in a clear and orderly fashion. Two bosses can create a muddle, so having all project communication housed in one software is essential.

ProjectManager has a “My Work” section that enables team members to see all of their tasks in one place, regardless of whether a project or functional manager assigned it to them. This enables them to manage their workflow more efficiently, marking their progress and adding comments along the way for managers. They can also work on tasks by projects too if they want to stay in one mindset before moving on to another project.

task management for matrix organizational structure
ProjectManager lets workers complete tasks in whatever way they want.

For project and functional managers, the reporting tools in ProjectManager can be nothing short of essential. With a real time project dashboard and advanced reporting features, management can always keep abreast of what’s going on. With ProjectManager, you can make a project report with just one click. Our reports include status reports, task reports, variance reports, availability reports and more. This is an all-encompassing project management software that suits everyone in the organization.

reporting for matrix organizational structure
Get automated, in-depth reporting.

When dealing with projects of immense size and complexity, a matrix organizational structure can give you an advantage, but only if you and your team are equipped with powerful tools. ProjectManager is a cloud-based software that is built to manage projects of all sizes and levels of complexity. Its real-time data keeps managers updated and gives teams a collaborative platform. Try it today with this free 30-day trial.

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