To help you prepare for the PMP exam, we are publishing a series of articles about PMP topics. This article will explain about organizational structures.
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So you have a lot experience working with different corporate and team members. Have you ever wondered how your company is structured? Or, how cool would it feel to assume your authority without ever needing to reach out to anyone? I didn’t realize this until I began learning for my PMP.
PMI’s Project Management Principles explains not only the organizational structures but also describes how each structure functions with teams.
According to PMP, there is four types of Organization: Projectized, Matrix and Projectized.
This organization structure is based upon a hierarchical structure that combines functions. This type of organization has a functional manager who holds all the authority. The majority of project work is done within a department. The manager of that department is responsible for everything.
Each member of the project team reports to a functional manager.
Functional managers must be involved in project management decisions.
Project managers assist functional managers in getting work done.
Administrators are a time-consuming task for project managers.
They are known as project expediters in functional organisations.
Broad specialist base available
Sharing knowledge about the latest technology
Flexible resource scheduling
Less Project Manager authority
A project is not managed by one person.
As the name suggests, Matrix organizations minimize the differences between Functional and Projectized Organizations. It also draws on the strengths of both these set-ups. However, the gap is so large that even the Matrix organization had three categories: Weak Matrix (Balanced Matrix), Strong Matrix (Strong Matrix).
Weak Matrix – This structure is bent towards functional organization. Functional managers still have to approve or cooperate with decision-making. Although they have some authority, project managers are not able to control the resources of a project. It is possible for project coordinators and project expediters to work in weaker matrix organizations.
Project coordinators can be described as expediters except that they report to higher-ranking managers.
The difference between Project Coordinators and Project Expediters is that an Expediter might have no authority, while a coordinator may have some decision-making authority at a lower level.
Balanced Matrix – This is clearly where the authority level is balanced. Functional managers and project managers share authority. The project manager is responsible for the people management decisions of the functional manager. However, the functional manager is responsible for the project manager’s decisions. A project manager and a functional manger report equally to the resources working in a balanced matrix organisation.
Strong Matrix – A strong matrix organization focuses primarily on the delivery of the projects. This arrangement gives project managers more authority than functional managers. The functional manager is responsible for people management decisions. However, the team reports to both managers. The team is appraised based on their project performance as well as their functional expertise.Advantage:Good control over projects
Improved coordination between departments
Early detection of problems
Change management is easier and more efficient.
Disadvantage:Duplicate Reporting – team members have two different bosses, one their functional manager, another project manager of the project they have been assigned to.
Sometimes, there would be conflicts between departments.
Information and workflow in multiple directions
Projectized: Every entity in a Projectized setup is organized around projects. The team is released once a project has been completed. The project’s resources are transferred to another project. Every crucial decision, including the one regarding budget, is made by the project manager. The project manager makes all decisions regarding a project’s schedule and quality. The project manager is ultimately responsible for the success and failure of the project. This is how a contractor or consulting company organizes itself.
One manager reports to the team
No multi-direction flow, just one point focus on projects
Rapid change response is possible
High level of project commitment