Project Management
Topic 2.3
Project Organization Structures
Copyright
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© 2012
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M
F UNC T I ONA L
T
P RO J E C T
I
X
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Organizational Structure Extremes
Chief Executive
Chief Executive
Project
Coordination
Project
Coordination
Functional Mgr
Functional Mgr
Functional Mgr
Project Mgr
Project Mgr
Project Mgr
Staff
A-1
Staff
B-1
Staff
C-1
Staff
A-1
Staff
A-2
Staff
A-3
Staff
A-2
Staff
B-2
Staff
C-2
Staff
B-1
Staff
B-2
Staff
B-3
Staff
A-3
Staff
B-3
Staff
C-3
Staff
C-1
Staff
C-2
Staff
C-3
Functional Organization
Project Organization
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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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Chief Executive
Functional Mgr
Functional Mgr
Functional Mgr
Staff
A-1
Staff
B-1
Staff
C-1
Project Mgr
P-1
Staff
A-2
Staff
B-2
Staff
C-2
Project Mgr
P-2
Staff
A-3
Staff
B-3
Staff
C-3
Project Mgr
P-3
Project Coordination
Strong Matrix
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Chief Executive
Chief Executive
Functional Mgr
Functional Mgr
Functional Mgr
Functional Mgr
Functional Mgr
Functional Mgr
Staff
A-1
Staff
B-1
Staff
C-1
Staff
A-1
Staff
B-1
Staff
C-1
Staff
A-2
Staff
B-2
Staff
C-2
Staff
A-2
Staff
B-2
Staff
C-2
Staff
A-3
Staff
B-3
Staff
C-3
Staff
A-3
Staff
B-3
Weak Matrix Organization
• Staff coordinates among themselves
• One staff member is designated either by management
or internally to coordinate
Project Mgr.
C-3
Balanced Matrix Organization
• 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 Management
Pages 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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Project Structures
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?
Share your thoughts in roundtable discussion
Learn by Doing Project Management
Page 36
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