Power Conflict: In a matrix organization, project managers have a lot of designated authorization; however they don’t have much formal authority. In project-centered organization like construction, engineering or the IT industries, the organizational structure is established around the project teams as its functional units. In some of the matrix organizations, adjustments are made in the hierarchy to support the project units. Under such schema, control revolves around the functional manager in terms of staffing and finances. The project manager has to negotiate and use his inter personal skills to get the budget approved or resource assigned. Also, both the managers have influence over the team of varied degree. There may be conflict between the managers and they use Reward/Coercive/Expert/Referent power to show case their influence. These situations can be handled by the project manager by audience analysis, customized communication, knowledge expansion, being high on integrity and updating the functional manager on the progress of their resources.