Matrix Management is a type of management used by some large organizations. Large projects are organized with teams that work on a functional, rather than a project, basis.

Under matrix management, all people who do one type of work are in a pool. For example, all engineers may be in one engineering department and report to an engineering manager. These same engineers may be assigned to different projects and report to a project manager while working on that project. Therefore, each engineer may have to work under several managers to get his or her job done.

Proponents suggest that there are two advantages to matrix management. First, it allows team members to share information more readily across task boundaries. Second, it allows for specialization that can increase depth of knowledge.

The disadvantage of matrix management is that employees can become confused due to conflicting loyalties. A properly managed cooperative environment, however, can neutralize these disadvantages. In order for the system to work, all parties must be willing to talk to each other to learn what their different objectives and goals are.

Matrix management can put some difficulty on the project managers because they must work closely with other managers and workers in order to complete the project. The functional managers may have different goals, objectives, and priorities than the project managers, and these would have to be addressed in order to get the job done.

One advantage of matrix management is that it is easier for a manager to loan an employee to another manager without making the change permanent. It is therefore easier to accomplish work objectives in an environment when task loads are shifting rapidly between departments.