The matrix structure allows an efficient use of company’s resources. There could be some negative impact on project due to conflict between project manager and functional manager. The most difficult challenge in matrix form is team development. Every member in team must be informed about their role in project and they must be informed about the authority. Untrained team member can cause unsuccess of a project so project manager should make sure that every team member is properly trained. In a project based structure project manager select team , allocate task , and see performance. Duplication of resources is biggest challenge in project based organization. It combines expert with skills to achieve common goal. Project manager has to deal with a large number of project at a same time so challenge is to choose the right kind of people for a particular project. The lack of learning power can be another hurdle for project manager.