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Construction is considered 'projectized' in project management, otherwise strong matrix at least.
The reporting to different level of management and the open communications. Matrix management structures combine functional and product departmentalization.
Management simultaneously organize part of a company along product or project lines and part of it around functional lines to get the advantages of both.
In a matrix organization, each project manager reports directly to the vice president and the general manager. Since each project represents a potential profit centre, the power and authority used by the project manager come directly from the general manager.
The basis for the matrix organization is an endeavor to create synergism through shared responsibility between project and functional management. Other advantages of a pure matrix organizational form, to project management, include:
- Because key people can be shared, the project cost is minimized
- Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved
- There is a better balance between time, cost and performance
- Authority and responsibility are shared
- Stress is distributed among the team
