Project Management Organization
Structures
Project Management Organization
Structures
• Organization of project teams and their leadership
structures differ according to certain
characteristics of projects.
– Some of the important differences are:
• who the project leader is,
• who has certain responsibilities and
• who makes the decisions.
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Functional Project Organization
General Manager
Functional
Manager
Functional
Manager
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
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Key Characteristics
– Project teams formed within the functional units.
– Nobody responsible for the entire project.
– Leadership occurs within functional units (expertise
centers).
• Leadership belongs to technical experts.
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Functional Project Organization
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Pure Project Organization
• Characteristics of projects suitable for this
organization structure:
• Characteristics
– Project requiring major changes.
– Hence, a small, self-sufficient and full-time team is set
up.
– The team leader is like an entrepreneur.
– Leader has full responsibility over the project.
– Functional units are stable, provide support to project
teams.
– Solution of technical problems is important.
– Integration of different functional units’ work is not
necessary.
– Stable environment.
– Success depends on application of narrow technical
know-how.
– Usually one functional unit is dominant (due to
technical reasons).
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– Functional project organization
– Pure project organization
– Matrix project organization
Functional Project Organization
Project
Coordination
Functional
Manager
• Three main types organization structures used in
projects:
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Pure Project Organization
Project Coordination
Pure Project Organization
• Projectitis
General Manager
Project
Manager
Project
Manager
Worker
Worker
Marketing
Worker
Worker
Finance
Worker
Worker
Legal
– a strong divisiveness occurs between the project team
and the parent organization.
– Project team members have difficulty in going back to
their functional units when the project is over.
Human
Resources
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Matrix Project Organization
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Matrix Project Organization
• A hybrid form that combines both some
characteristics of functional and pure project
organization forms.
• Project manager and functional managers share
responsibility.
• Characteristics of projects suitable for this
organization structure :
– Integration of work done by different functional units is
very important.
– Changes (instability) both inside and outside the
company.
– Success does not depend on application of a narrow
expertise.
– Project manager decides what tasks will be done, and
when they will be done.
– Functional manager decides who will work in the
project and which technologies will be used.
– Members of the project team have two “bosses” that
OPSM 639,
C. Akkan
they
report to.
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• Team members could be working on multiple
Lightweight Matrix Project
Organization
Matrix Project Organization
• Matrix structures differ according to the “weight”
of the project manager (relative to functional
managers) :
(1) “Lightweight”
(2) “Middleweight” - the traditional one
(3) “Heavyweight”
General Manager
Functional
Manager
Functional
Manager
Functional
Manager
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Project coordination
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Lightweight Matrix Project
Organization
Heavyweight Matrix Project
Structure
General Manager
• In lightweight structures ...
– Representatives from each functional unit
Functional
Manager
• perform coordination and support.
– Functional managers have real power.
Functional
Manager
Manager of Project
Managers
• They provide functional input.
– Project coordinator
• Is responsible for the coordination/intergration of inputs from
different functional units.
• Does not have direct authority over the workers.
Worker
Worker
Project Manager
Worker
Worker
Project Manager
Worker
Worker
Project Manager
Project Coordination
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Heavyweight Matrix Project
Structure
• Characteristics of the project leader
– Integration is very important and is the key responsibility of the
project leader.
– Objective is to provide a perfect system solution, not technical
excellence within a narrow functional area.
– Project leader works with a core team of functional leaders. They
have power to get things done within their units.
– A effective manager who is experienced in more than one
functional area.
– Works like a general manager (CEO) within the project. Can
influence details.
– Works like the conductor of an orchestra:
• Keeps track of how certain critical tasks are done and coordinated as a
whole.
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Evaluating Alternative
Organizational Structures
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Evaluating Functional Organization
• Use of (human) resources
– Efficiency, flexibility, motivation
• Performance measurement
– Career paths, performance reviews
• Focus
– project vs. regular tasks
• Cross-functional integration
• Build-up and use of functional expertise and know-how.
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Heavyweight Matrix Project
Structure
• In heavyweight structures ...
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OPSM 639, C. Akkan
Strengths
Weaknesses
Skill development
Customer interface unclear
Technology transfer
Project priority unclear
Low talent duplication
Confused communication
High personal loyalty
Schedule/cost controls are
difficult
Technology development
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Evaluating Matrix Organization
Evaluating Pure Project Organization
Strengths
Accountability clear
Weaknesses
Strengths
Weaknesses
Talent duplication
Single point accountability
Manager skill level high
Customer interface clear
Competition for resources
Rapid reaction
Employee recognition
Management cooperation required
Customer interface clear
Technology development
Controls strong
Tehnical sharing
Duplication reduced
Communications strong
Career development
Technology development
Balances technical, cost and
schedule
Hire/fire
Career development
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Disbanded easily
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