Matrix Organization

          Matrix organization or project management organization, has long been practiced in industry, its distinguishing feature is that it may operate alongside any other basic type of internal organization. Under matrix organization, special projects can be accomplished while a company's basic operations continue. Sometimes such projects conflict with normal operations, but this is recognized and accepted as part of matrix organization.
          The responsibility for guiding projects through to their completion is given to a project manager, who usually has authority over all departments necessary to the project. Conflict is resolved by the amount of authority given to the project manager, which depends on how important the special project is.
          Matrix organization has received great attention because of the demands of our space program and the needs of our defense department. For example, a factory that is building a space capsule cannot stop all other operations for that one project. Instead, the work is made a special project, and a project manager is assigned to direct the construction of the capsule as it moves from department to department. If a project is important enough, other work in the department will be put aside until the special project is completed.
          Automobile factories often use matrix organization to develop models of new cars. For example, General Motors developed its Chevrolet Vega as a special project that was conducted by normal operating departments. Many other types of businesses also use matrix organization to develop new or experimental products or designs. In fact, President Franklin Roosevelt named his famous DC-3 airplane the Sacred because he had heard that that's what employees of Douglas Aircraft called it as it moved through the factory as a special project. The production of this presidential airplane was a perfect example of matrix organization.
          Although there is no single way to show the many departmental interrelationships that may exist when matrix organization is used with line or line and staff arrangement. Basically, matrix organization involves authority across departmental lines, while other types of organization involve authority that flows from the top down.