Difference between Project Organisation and Matrix Organisation

[rms]

Is Project Organisation same as Matrix Organisation. what are its benefits?

[nbm]

Project Organisation Matrix Organisation and grid organisation are the same.Matrix organisation is combination of project organisation and the functional organisation. In it, authority flows vertically within functional departments, while authority of project managers flow horizontally crossing vertical lines.

(1) Built around specific projects-Matrix organisation is built around a specific projects. The charge
of the project is given to the project manager who has the necessary authority to complete the project
in accordance with the time cost, quality and other conditions communicated to him by the top
management.

(2) Personnel from various departments—The project manager draws personnel from various
functional departments. He assigns the work to the various functional groups. Upon completion of the
project, the functional groups return to their functional departments for reassignment to other projects.

(3) Different roles-The project and the functional manager have different roles. The project
manager exerts a general management view point with regard to his project. Each functional manager is
responsible for maintaining the integrity of his function. However, both the project and functional
managers are dependent on each other as they have to take several joint decisions in order to execute
the project. So there is proper coordination between the project and the functional groups

(4) Management by objectives—Management by project objectives is paramount to the way of
thinking and working in it.