An area of potential conflict on projects is the way the organization is structured. Different struct! create different challenges. This exercise will examine the types of organization structures and th impact on a project manager's ability to execute the project.
There are three major types of organizational structures: projectized, matrix, and functional. Eac type of structure will influence the project manager's authority, how resources are committed to project, and the administrative help available to the project manager. A project manager may ha more or less power depending on how the organization is structured.
Projectized organizations A projectized organization is organized around project managemen These organizations have realized that organizing around project management allows it to focus its primary objective—delivery of projects to realize the corporation's goals. Projectized organiza provide complete authority to its project managers and usually provide administrative support. Personnel assigned to a project are usually committed on a full-time basis. There is very little do line reporting in these types of organizations. Figure 9.1 depicts an organization chart for a proje organization.
Functional organizations A functional organization has been established to perform certain functions, such as sales, marketing, or accounting. A functional organization will perform project the projects are sometimes confined to a functional area. If projects cross functional boundaries project managers are challenged to find and keep resources and executive support. Most peopl believe that a project manager has little or no authority in a functional organization. Figure 9.2 de a functional organization chart.
Matrix organizations Matrix organizations use components of both functional and projectized organizations. There are three levels of progression in a matrix organization that correspond to I projectized or functional the organization is structured. These levels are a weak matrix, balance' matrix, and strong matrix, with strong matrix being very close to a projectized organization. The authority level of the project manager will also vary according to how weak or strong the matrixe organization is. Figure 9.3 depicts a balanced matrixed organization.
When you are assigned a new project, remember to analyze the organization structure in which are working. This knowledge will assist you in acquiring resources and understanding the challe you may face.
In Exercise 9.4, you will test your knowledge about organizational structures as you help the Sensational Advertisement Productions company.
Note Recommended Reading: Chapter 1, pp. 12-22, PMP Project Management Professiot Study Guide.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.