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The project manager has fully authority for the execution of the
project and he reports to the program manager in the parent
organization. The lines of communication are shortened as the
project manager directly communicates with the parent project
organization members.
Matrix Organization:
In Matrix Organization, two complementary organization
structures, i.e. the project organization and functional
organization are merged together in order to create a matrix
structure.
Difficult to Manage:
Under matrix organization, internal operations are
complicated. This is due to horizontal and vertical lines of
authority. The rule and procedures are not followed
uniformly in all departments therefore it becomes difficult to
manage.
Create Communication Gap: There is communication gap
between project manager and functional manager. This is
may lead to confusion.