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
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”
functional org structure
Matrix
•Think “cross-functional teams” or “two bosses”
      – Teams members report to both project manager and functional manager
matrix organizational structure
Projectized 
•Organized by projects; Think consulting firms
•Project manager has total control
•No home base
functional org structure projectized organizational structure
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