project management topic 2.3 project organization structures · • a mix of functional and project...

Copyright © 2013 Baker 1Copyright © 2012

Project ManagementTopic 2.3

Project Organization Structures

Copyright © 2013 Baker

MF U N C T I O N A L

TP R O J E C T

IX

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Organizational Structure Extremes

Project ProjectCoordination Coordination

Staff Staff Staff Staff Staff StaffA-1

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

3


• 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.

5


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 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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