In which organizational structure is the project administrative staff full-time
There are three broad structures by which an organization can be organized: functional, matrix, and projectized. These structures represent a continuum, from structures where the project manager has very little authority (functional) to those where project managers have very broad power (projectized) (See Figure 2-1). Show
There have been many studies about the impact that organizational structure has on project success, and it is not uncommon for corporations to change their organizational structure in order to increase their relative success in executing projects on time and within budget. This type of change takes great effort and may take a long period of time to fully implement. Instead of changing their entire structure, an organization may elect to create a dedicated project team in order to carry out a critical project without reorganizing the entire enterprise. This way, they can get many of the same benefits of the projectized organization without reorganizing the enterprise. This approach is not without risk, as we’ll explore in the section on dedicated project teams. Figure 2‑1: Project Manager Authority and Organization TypeFunctional OrganizationsPerhaps the least project-focused type of organization is functional organizations. Large organizations are traditionally organized by function into various departments, with staff in each department reporting to a departmental manager or head of department. This allows for groupings of specialists within the organization where they can work together, share knowledge and prioritize their work. Traditional functional departments might include:
These functional units work independently of each other, and the functional managers serve as conduits for communications and collaboration (See Figure 2-2). This type of structure is very efficient for operations management where continuous process improvement can be conducted on all regular departmental operations. However, it is not optimal for the completion of projects. Projects often require work across disciplines. In the functional organization, with staff isolated inside their departmental “silos,” communication is directed through the functional managers. These managers often have differing priorities, which can make communications slow and error-prone in a functional organization. Figure 2‑2: Functional Organization StructureThe success of projects within a functional organization depends on functional managers working together and cooperating. While someone maybe designated as the project manager for a particular project, that person may not have much authority (See Figure 2-3). Often titles such as Project Coordinator, Project Scheduler, or Project Expediter will be used instead. Regardless of title, those in charge of projects are often put in the role of simply trying to maintain a schedule of what is happening. Figure 2‑3: A “Project Manager” in a functional organizationPMI identifies the following project characteristics for projects conducted in functional organizations:
Projectized OrganizationsProjectized organizations are at the opposite end of the organizational spectrum from functional organizations. Organizational energy and resources are focused on completing projects rather than ongoing operations. In a projectized organization, operations are minimal and the project manager has great authority over resources and personnel decisions. Projectized organizations may have organizational units called departments and these groups either report directly to the project manager or provide support services to projects. In the project-based structure, personnel are specifically assigned to the project and report directly to the project manager (See Figure 2-4). The project manager is responsible for the performance appraisal and career progression of all project team members while on the project. As you can imagine, employees in this type of environment are able to focus their loyalty to a project rather than their particular discipline. Not all people can succeed in such an organization, as they must adapt to the leadership styles and organizational skills of different project managers. This is the most efficient organizational type for conducting projects, and it is used in those types of organizations that bid on and undertake large projects—military, industrial, scientific, etc.— that may last several years. Examples of project-based organizations include construction companies, aeronautical manufacturers such as Lockheed Martin, and many software development companies. This type of organizational structure can put additional stress on employees as they have no home to return to once their project is over, if they are not selected for a subsequent project. But it is generally considered ideal for project management since there is a significant reduction in the layers of bureaucracy that a project manager must navigate. PMI identifies the following project characteristics for projects conducted in projectized organizations:
Matrix OrganizationsWhile the functional structure may work well in times of little change, it has some serious limitations when the success of a company depends on being adaptable. A matrix structure tries to combine the strengths a functional organization provides for operations management with the strengths a projectized organization provides for project management. In a matrix organization, the functional and project manager share authority and responsibility. This can lead to several negatives:
However, there are several advantages to a matrix structure in terms of projects:
PMI recognizes three types of matrix structures, as described below (See also Figure 2-5).
Dedicated Project TeamMany functional organizations find that they often need to carry out important projects but do not want to change their entire organizational structure. Recognizing the advantages that are achieved by giving authority to a project manager, functional organizations often organize dedicated project teams where a project manager can have authority over the staff assigned to that particular project. The project manager and project team members are sometimes located in a special office, away from the desks and duties that they normally have within the functional organization (See Figure 2-6). This can be a very effective way to complete projects. However, some difficulties can arise:
A classic case of the use of a dedicated project team—and the problems it can cause to the functional organization—was when Steve Jobs picked the best and brightest engineers from Apple to work on the development of the Macintosh computer. The project was very successful, but there was a lot of tension between the project team and the functional organization. What is the administrative structure of an organization?An administrative organizational structure is a typically hierarchical arrangement of lines of authority. It determines how the roles, power, and responsibilities are assigned, and how the work process flows among different management levels.
What are the 4 types of project organizational structures?According to PMI, there are four basic types of organization: Functional, Matrix, Projectized, and Composite.
In which type of organization a full time project manager is necessary?Project oriented (composite or hybrid) Organization
An organization of this type considers every job as a project. Here, the project manager has full authority to complete the project successfully, has a full-time role, budget control, and a full time team available.
What is the organizational structure for a project management?There are three types of organizational structures in project management: functional, matrix, and projectized. Each project structure framework is determined by the authority, roles, and responsibilities of the team members within the existing organizational structure.
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