three types of organizational structures are
Functional: also known as traditional, hierarchical or vertical.
| Pro's | Con's |
|---|---|
| Simple | Coordination between functions can be difficult |
| Direct Access to technical resources | Project can take a back seat to operations |
| Team members report to their boss |
this structure is best when the project is contained within one functional area, since as a PM you'll be reporting to a functional head who's in charge of the personnel, money and scope you'll have very little power, you'll be more of a project coordinator than manager. You'll also be competing against operational priorities for resources. In this type of structure you'll have to rely heavily on soft skills to get what you need to be successful.
Pure Project Organization
this is the opposite of the functional organization, in the projectized organization the PM is the boss, is responsible for time, resources and scope. The personnel are 100% allocated to the project, the PM has full authority. In organizations that utilize the pure project approach to organization every endevour is temporary. Project work isn't organized by function but is rather allocated to a group of resources that come together to solve that particular unique problem.
In such an organization all of the team members report directly to the PM, and only work on their current project deliverables; this type of approach is ideal for multi year projects that require a dedicated team to solve a complex problem.
| Pro's | Con's |
|---|---|
| PM has full authority, all members report to PM | Temporary all good things must come to an end |
| Simple structure don't have to negotiate for resources | Resources can't be shared, must keep team busy |
| Direct access to permanent resources allocated to your project | can create duplication |
| strong team identity and commitment, bonds form between colleagues |
Matrix Organization
This organization structure tries to leverage the Pro's of both the functional and pure project organizations. In a matrix organization there are traditional functional units, but the projects will draw members from these functional units, but unlike the functional organization structure the resources are shared by the PM and the functional head, meaning that they have two bosses. Matrix organizations come in multiple flavors, ones that are considered weak will take on more of the traditional functional organization attributes whereas ones that are considered strong matrix organizations will take on more of the characteristics of the pure project organization.
the distinction of whether a matrix organization is considered
This organization structure tries to leverage the Pro's of both the functional and pure project organizations. In a matrix organization there are traditional functional units, but the projects will draw members from these functional units, but unlike the functional organization structure the resources are shared by the PM and the functional head, meaning that they have two bosses. Matrix organizations come in multiple flavors, ones that are considered weak will take on more of the traditional functional organization attributes whereas ones that are considered strong matrix organizations will take on more of the characteristics of the pure project organization.
the distinction of whether a matrix organization is considered
- Weak: functional head controls resources
- Balanced: functional head and PM share responsibility of resources
- Strong: PM controls resources
| Pro's | Con's |
|---|---|
| Shared & flexible access to resources | Employees have two Bosses |
| Resources are project focused | Increased Conflict, employees have to balance operational with project work |
| Shared commitment between PM and functional head | Communication complexity |
As you can see none of these approaches are perfect the trick is to pick the approach that best fits the particular project.
Project length: for projects that are cross-functional and run multiple years the preferred structure is pure project or strong matrix.
# of functional areas needed: when numerous functional areas are required to complete a project than the more valuable it is to use a strong matrix or pure project approach.
Functional knowledge is key: when the project is within a functional unit and the knowledge is very niche than a functional organization may be best suited.
