Perceived power of matrix managers and its effects on project success in IT departments of Turkish banks utilizing matrix structure

Matrix organization represents one of several alternatives for dealing with the requirements for information processing (Galbraith, 1973). It is any organization that employs a multiple command system (Davis, Lawrence, 1977). Power, on the other hand, is the potential for influence that is based on one person?s ability and willingness to sanction another person by manipulating rewards and punishments important to that person (Emerson, 1962; Hersey, Blanchard, Johnson, 1996). The objective of this research is to examine the relation between project success and power of matrix managers (functional and project managers) as perceived by project members in information technology departments of Turkish banks operating under matrix structure. All projects completed in year 2007 and 2008 within those banks have been defined as the sampling frame. In order to measure the perceived power of functional and project manager, Rahim?s (1988) Rahim Leader Power Inventory (RLPI) has been used as the instrument. RLPI survey contained a total of 29 questions measuring the five power bases (coercive, reward, legitimate, expert, and referent) as defined by French and Raven (1959). In order to measure the project success as perceived by project members, the project success questionnaire of Dvir and Shenhar (2002) has been used as the instrument. Project success questionnaire contained 9 questions for the following three dimensions: project efficiency, the impact on customer, and business success. The research showed that among five power bases, there is a relationship between legitimate power of functional managers and project success. The research also found that there is a relation between referent power of project managers and project success. Significance of certain project member demographics like percentage of work time allocated to project, total work experience, work experience in the firm, age, and gender have also been investigated.Keywords: Matrix Organizations, Project Success, Social Power, Power Perception, Project Management.