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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
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- There are three types of organizational structure: Functional, Matrix, and Projectized
Organizational Structure Summary
| 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
| Advantages | Disadvantages | |
| Functional | Lines of AuthorityCareer Path | No Project Loyalty |
| Matrix | Better Project Focus | Two Bosses |
| Projectized | Project Manager Has Power | No Home for Team Members |