Oct 16

Projects and Organizational Structure

Projects and Organizational Structure

Organizational Structures

1. Functional Organization

2. Projected Organization

3. Matrix Organization


How Projects are affected by the style of the organization

1. Functional Organization:
Each functional department is a separate entity. Projects are done usually within a functional unit independent of other units. If the help of other units is required, it is done through the hierarchy of the functional managers. Usually an unit has a manager. Based on the size, each unit may have multiple managers with hierarchy.Such organization may not carry out many projects, project managers may not be so important, project managers may be just part-time with little/no authority.

2. Projected Organization:
Organized around projects. They mostly do projects. Most resources are invested for projects. Here, project managers have the supreme authority and usually are full time.

3. Matrix Organization:
Just a mix of the functional and projected organizations. The matrix may be strong in projected area and weak in functional area or vice versa.

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