One aspect of project management that used to receive quite a bit of attention in the 1950s and 1960s was project organizational structures. A myriad of new organizational structures have appeared on the scene in the last two decades, but they still lack many of the desirable qualities of traditional methods. Ultimately, project management managers look for organizational methods that facilitate teamwork, can maximize the use of limited resources, efficiency, and quality in how a project is completed and how goals and objectives are achieved. . This article will examine the three main traditional organizational structures for project management. These three structures are the functional organization, the project organization and the matrix organization.
Functional Organization This structure is by far the oldest of the organization methods, but it is still one of the most successful. This method works best when used for routine job functions and to maintain quality and work standards. Functional Organization structures assign projects in two different ways. One way involves the project being assigned to a specific functional manager who then coordinates with the other departments so that each contributes. Alternatively, projects can be shuffled between different departments where each department manager makes sure their parts of the work have been completed.
This method does not work very effectively when used to facilitate complex projects. One of the main criticisms of this organizational structure is the lack of integrated recognition, measurement, and reward of employees for project performance. Similarly, there is very little individual responsibility for any project management tasks that need to be performed.
Project Organization The Project Organization is a structure that is specifically designed to execute projects. It is specifically designed to meet the demands of complex projects by isolating single work and maintaining a strong focus on completing the project. Once the project is completed, this structure dissolves. This structure is effective in keeping resources dedicated throughout the life of the project.
The main criticism of this structure is that it is inefficient in technology transfer and resource use. Furthermore, by the time the members really begin to act as a cohesive team, the project is over and the organization is dissolved. Since this project has dedicated resources throughout its life, great inefficiency occurs when employees are underutilized during certain parts of the project.
Matrix Organization The Matrix Organization is a project management structure that evolved from the recognition of inherent flaws in the Functional Organization and Project Organization structures. Created in the 1970s, this structure combined the best components of these two structures. This model works very well when several projects are coordinated at the same time. Functional managers oversee the staffing, training, task assignment, and evaluation of project personnel. Functional Specialists are assigned one or more projects and see that these individualized projects achieve their goals through maximum resource efficiency.
Despite its acknowledgment and avoidance of the flaws involved in another structure, the Matrix Organization still has some problems of its own. Individual employees report to at least two managers, which can often lead to ambiguity and conflict. These problems can be avoided through good communication and strong leadership among managers.
This article simply provided an overview of various project management organizational structures. The Functional Organization, the Project Organization and the Matrix Organization are the three most traditional project management structures that are still used today due to their effectiveness. However, keep in mind that there are many other methods available that may be better suited to your business situation. However, the type of organizational structure that your company should choose depends on the type of project, as well as the objectives and goals that it ultimately intends to achieve.
