The Roles of Functional Managers and Project Managers in a Matrix Organization

In the era of technological change, the success of capital expenditure projects is significantly influenced by good project management, including project management structure. This paper presents how the roles of functional and project managers can positively influence project performance in a matrix structure. The focus on organizational structure is important since the fourth industrial revolution (Industry 4.0) depends more on highperformance computing and the co-existence of technology with human resources. A case study was conducted in a technology company in South Africa which had restructured their software department from a top-down reporting structure to a matrix structure (dual management system). This research identified gaps in the current roles of the managers and in the matrix structure itself. The focus of the research was to identify the factors that were negatively influenced by the matrix structure such as the quality of the projects produced, the level of risk involved and return on investment from the projects delivered. It was found that functional teams were hemorrhaging 9.56% of employees through resignations and projects were only achieving 94.17% of their objectives.