The matrix style of project management emerged in the 1970s as a result of ongoing efforts to improve organizational structure and operations. A matrix organization uses a structure that has functional managers who are in charge of groups of employees who perform similar roles. The structure of such organizations made managers see this change as a threat to their area of ​​control. This results in what can be called unnecessary tensions between project managers and functional managers due to the need to perform different activities with the same set of employees.

Initially introduced to deal with the increasing complexity of projects in the aerospace industry, this project management structure has been adopted in many cases to deal with internal and external issues within an organization. There are multiple advantages offered by this management style. For starters, there is better coordination of shared resources and technologies across organizations. It also improves coordination and communication across the company, as well as increasing employee access to a wide range of skills. Matrix management works best when an organization has clearly defined goals and is properly cascaded to the goals of the horizontal and vertical components within the matrix. Aside from these advantages, the matrix management style also has some significant challenges.

The segregation of the reporting structure to project managers and functional managers can create conflict and stress in the organization. These multiple reporting lines can lead to people not taking responsibility for their work, which in turn can erode organizational culture. Such organizations are vulnerable to constant and repeated reorganization. The reorganization can disrupt the normal functioning of the organization and its know-how.

We have also often found that matrix management focuses on short-term goals rather than long-term success. The root of this problem lies in the fact that there is no clarity about who is responsible for what and people have no idea who to turn to for the information needed to solve a problem or make a decision. This not only causes immediate problems, but also leads to long-term problems. One of the other major challenges for the matrix management concept is getting “buy-in” from those affected. Matrix management is often considered another popular fad of the month as it puts an emphasis on core competencies due to which employees are suspicious of management. Companies are turning to matrix management as the standard for rebuilding organizations and this is evident in the demands of the market these days.