Matrix Organization

The concept of a matrix organization is one which is picking up significant steam in the modern business world, one which is eschewing a number of older somewhat antiquated concepts in favor of more current, progressive concepts of business practice that tend to decentralize power to the extent possible and, instead, broaden the number of people who have significant influence, in hopes of getting more ideas as well as providing a better division of labor and hopefully, spurring on more team concept. The idea of a matrix organization specifically refers to any organization in which the project manager or project team leader actually shares responsibility for the project with a number of individual functional managers. The shared responsibilities in a matrix organization include but are not limited to the acts of assigning priorities and tasks to individual project team members, directing the course of action of either individuals or groups of project team members.

This term is defined in the 3rd and the 4th edition of the PMBOK.

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