Organization Structure

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Organization

Structure
Types With Examples
Organization Structure

What Is Organizational Structure in Project Management?


A project management organizational structure is used to determine the
hierarchy and authority of people involved in a specific project. The structure
defines each team member’s function and the reporting lines on a chart for
team members to reference during a project.
Types of Organization Structure:
§ Functional Organization.
§ Projectize Organization.
§ Matrix Organization.
1 Functional Organization
Functional Organization

Functional Organization:
A functional organizational structure is a team structure that groups employees
into different departments based on areas of expertise. This type of structure is
one of the most common types in business, especially in larger companies,
where groups of employees are organized according to the function they
perform.

Example:
Examples of a functional organization structure can be a software development
company where developers, testers, and designers work in separate
departments based on their experties and knowledge.
2 Projectized Organization
Projectized Organization

Projectized Organization:
A projectized organizational structure is a framework where an organization's
operations are primarily structured around projects rather than functional
departments. In this structure, employees are assigned to specific projects and
work under the direction of project managers.
Example:
Examples of a Projectized organization structure can be a construction
company, in which each project has a team led by a project manager.
3 Matrix Organizational Structure
Matrix Organizational Structure

Matrix Organizational Structure:


A matrix organizational structure is set up on a grid to demonstrate staff
reporting patterns to more than one authority. It is a hybrid of functional and
projectized organizational structures, and project managers share authority with
other program managers in this structure. Depending on the decision-making
capacity of the project manager, a matrix structure is one of three subtypes:
weak, balanced, or strong.

Example:
Examples of a Matrix organization structure can be a company where all staff
report their progress to functional manager and a project manager as well.
Matrix Organizational Structure

Types Of Matrix Organizational Structure:


§ Weak Matrix.
§ Balanced Matrix.
§ Strong Matrix.

1- Weak Matrix:
Weak matrix is much similar to Fuctional Organization as in a weak matrix, the
project manager has the least amount of decision-making power compared to
the other matrix management types. When the project manager has limited
authority over the project, the matrix becomes weak because the project
budget and timeline is in the hands of the department head.
Matrix Organizational Structure

2- Balanced Matrix:
In a balanced matrix, the project manager also holds a staff position and does
not utilize the project manager role to its full capacity. The project manager still
has little authority over project decisions, budget, staff, etc., and primarily
serves as the point of contact and coordinator.

3- Strong Matrix:
A strong matrix is most similar to a projectized organizational structure. In it, a
dedicated project manager falls under a functional project management
department, has dedicated cross-functional staff, and is supported by a
manager of all the project managers. This subtype offers the project manager
the most authority as they work across a matrixed environment.

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