Strong technical base. Each person has a place in the company after the completion of a project. This provides long term security and a defined career path in the company. More administrative personnel are needed to develop policies and procedures. Balance of power between functional and project groups must be maintained.
Personnel have two bosses.
Project managers must negotiate for needed staff. Comparison of Matrix Organization with Functional and Project Matrix form is a compromise between functional and project organizations. With proper planning, disadvantages of both structures can be eliminated. The matrix structure is the most complex of all organizational forms. When several kinds of sophisticated skills are needed for the projects - skills that need constant updating.