However, on the other hand project matrix approach in organization’s strategic management becomes a daunting task because it combines the standard vertical hierarchical structure with a superimposed horizontal structure of a project coordinator. This is evident in the case study of SMA: MEPD the top management is in constant conflict and also there is lack of communication to the entire division after the Resources Allocation Team meeting with the top management.
The source for this undoing of the project matrix is because the man in the middle is working for two bosses. Horizontally, ought to report to the project coordinator or manager, while vertically, ought to report to his functional department head (Larson and Gobeli, 2007). This give rise to conflict situation where the project manager often feels that he has little authority with regard to the functional departments, while on the other hand, the functional department head often feels that the project coordinator is interfering with its territory (Larson and Gobeli, 2007).
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