introduction
this article talking about organizational structure based on project
some companies are fully project oriented
and some companies are fully product oriented but using project management in lowest level
and some companies between both which called matrix
let us to discuss the difference between all of them
Projectized Organization
A projectized organization is the ideal organization type for a project manager. Project managers are the real bosses here, with the freedom to apply his expertise and have a say in the proceedings.
However, once a project is delivered, project managers become redundant.
There is no job security in this type of organization.
Advantages:
- Organizational resources are dedicated to projects
- Project managers almost have ultimate authority
- Teams are formed and often collocated during project
- Loyalties are to project to project manager not to a functional manager
Disadvantages:
- Team members are out of the work at the end of project , so at the last phase of project the team will focus seeking job rather than focus on project tasks
- Inefficiency of team members at project beginning
Functional Organization
the organization is grouped into departments where people with similar skills are kept together in forms of groups; e.g., sales department, marketing department, finance department, etc.
This helps organizations enhance the efficiencies of each functional group.
All authority (i.e., budget allocation, resource allocation, decision-making, etc.) belongs to the functional manager
Resources in functional organizations report directly to the functional manager.
The functional manager reserves the authority to release resources based on their subject matter expertise.
When the project ends, the resources are returned to the functional manager again for routine work.
Project managers typically do not exist in this type of organization structure;
if this position exists, the role of the project manager will be very limited. The project manager may have the title of a coordinator or an expediter.
Advantages:
- Enduring Organizational structure (NO need outsourcing )
- Clear career path with separation of functions (organization structured based on functional department )
- Employees have one supervisor with clear chain of command
Disadvantages:
- Project manager has little to no more formal authority
- Multiple projects compete for limited resources and priority
- Project team members are loyal to the functional manager
Matrix organizations
Matrix organizations aim to minimize the differences between projectized and functional organization , and take advantage of the strengths and weaknesses of both organizations.
Matrix organizations are categorized as;
Strong Matrix:
- balance of power rests with the project manager
Weak Matrix:
- balance of power rests with the Functional manager
Balanced Matrix:
- balance of power rests with both the project manager and functional manager
.
Advantages of Matrix Organization
- high visible project objectives
- More support from functional area
- More utilization of scares resources
- Better coordination
- team members have home to back
Disadvantages of Matrix Organization
- Reported two boss
- Extra administration is required
- More complex to monitor and control
- Resources allocation is more complex and depend on project manager and functional manager
- Functional manager may have deferent priorities than project manager , which lead to high potential of conflict
Coordinator Vs Expeditor
Expeditor
- act as staff assistant , he don’t have authority to make or even enforce decision
Coordinator
- similar to Expeditor but with little authority and report to high level manager
both in weak matrix structure
