project management topic 2.3 project organization structures · • a mix of functional and project...
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Copyright © 2013 Baker 1Copyright © 2012
Project ManagementTopic 2.3
Project Organization Structures
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MF U N C T I O N A L
TP R O J E C T
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Organizational Structure Extremes
Project ProjectCoordination Coordination
Staff Staff Staff Staff Staff StaffA-1
Staff Staff Staff Staff Staff Staff
Staff Staff Staff Staff Staff Staff
Functional Organization Project Organization
A-3
B-3
C-3
Functional Mgr Functional Mgr Functional Mgr Project Mgr Project Mgr Project Mgr
A-1
B-1
C-1
A-2
B-2
C-2
Chief Executive Chief Executive
A-2
A-3
B-1
B-2
B-3
C-1
C-2
C-3
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• Typical of businesses that sell and produce standardized products.
• Groups consist of individuals performing the same function.
• Periodically undertake in-house projects.• Team members can be assigned to the project.• Team members continue regular functional jobs.• Project manager does not have complete authority
over team.
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• Typical of businesses that sell and produce customized products.
• Typical of companies providing project services, not selling products.
• Work on multiple projects at a time.• Project team is dedicated to one project.• Project manager has complete authority over
team.• Each project team tends to be isolated.
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Staff Staff Staff Project MgrA-1
Staff Staff Staff Project Mgr
Staff Staff Staff Project Mgr
Project Coordination
Chief Executive
A-2
A-3
B-1
B-2
B-3
P-1
P-2
P-3
Functional Mgr Functional Mgr Functional Mgr
C-1
C-2
C-3
Strong Matrix
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Staff Staff Staff Staff Staff StaffA-1 A-1
Staff Staff Staff Staff Staff Staff
Staff Staff Staff Staff Staff Project Mgr.
C-1
C-2
C-3
Functional Mgr Functional Mgr Functional Mgr Functional Mgr Functional Mgr Functional Mgr
A-2
A-3
B-1
B-2
B-3
Chief Executive Chief Executive
A-2
A-3
B-1
B-2
B-3
C-1
C-2
C-3
Weak Matrix Organization Balanced Matrix Organization• Staff coordinates among themselves• One staff member is designated either by management
or internally to coordinate
• Project Manager appointed with specific project authority• Project Manager may also provide technical expertise
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• A mix of functional and project organization structures.
• Used in companies that work on multiple projects at a time.
• Provides project and customer focus.• Retains functional expertise.• Individuals can be assigned to various types
of projects.
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Matrix Organization (Cont.)• Both project managers and functional
managers have responsibilities.• The Project Manager is the intermediary
between customer and company.• The Functional Manager decides how tasks
will be accomplished.
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Organizational Structures
Learn by Doing Project ManagementPages 34-35
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• Tend to be large projects covering many functional areas and requiring high levels of technical expertise.
• Matrix is the predominate mode• A strong matrix with effective project
managers minimizes leadership intervention and decision making.
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1. How is your company organized to handle projects?2. Which structure best fits your organization?3. What can a project manager do to be successful in
each of these structures?
Project Structures
Learn by Doing Project ManagementPage 36
Share your thoughts in roundtable discussion
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