Differences Between Organizational Structures

• • Projects are impacted by the organization, including its culture, policies, and procedures
  • Good project managers look for these influences and use them to their benefit

• There are three types of organizational structure: Functional, Matrix, and Projectized

	Functional	Matrix			Projectized
		Weak Matrix	Balanced Matrix	Strong Matrix
Project Manager’s Authority	Little or None	Limited	Low to Moderate	Moderate to High	High to Almost Total
Resource Availability	Little or None	Limited	Low to Moderate	Moderate to High	High to Almost Total
Who controls the budget	Functional Manager	Functional Manager	Mixed	Project Manager	Project Manager
Project Manager’s Role	Part-time	Part-time	Full-time	Full-time	Full-time
Project Management Administrative Staff	Part-time	Part-time	Full-time	Full-time	Full-time

Let’s now examine each of these structures in more details:

Functional

•Most common type of organization

•Organization is grouped by area of specialization (e.g. marketing, IT…)

•Think “silo” or “smokestack”

Matrix

•Think “cross-functional teams” or “two bosses”

      – Teams members report to both project manager and functional manager

Projectized 

•Organized by projects; Think consulting firms

•Project manager has total control

•No home base

Summary

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