1. In this type, an attempt is made tp preserve the strong points of both the line personnel and the staff personnel.
2. A balanced matrix organization divides the power into functional and project responsibilities.
3. This organization structure endeavors to solve the conflicts between the line personnel and the functional staff by opening up lines of communication at all levels through the assignment of dual reporting responsibility to the subordinate managers.
4. The project responsibilities such as scope cost and schedules come under the responsibility of the chief Project Manager.
5. Functional responsibilities such as design, quality assurance and internal company policies come under the functional staff.

Advantages:

1. The functional staffs are having equal powers to enforce the compliance of the project with their specialized skills in design, quality, etc.
2. Best suited when the project authority and functional authority are well defined and divided.
3. Removes some of the weaknesses of the line and staff organization.

Disadvantages:

1. As compared to the other organizations, the overall management and administrative costs will be higher.
2. Difficulty in precisely defining the accountability to the functional and project managers.