Organizational Structure

A project operates in with people, process and technology of an organization. Projects have an
impact on the culture, policies, procedures and other aspects of an organization. The
organizational structure has a major influence on the execution of the project. The organizational
structure decides the resources, communication methods and other aspects of project
management.
Different types of organizational structures include:
Functional
This is the most common form of an organization. Organizational departments are grouped by
areas of specialization within different functions. In these organizations, the project generally
occurs in a silo environment, i.e. within the same function. Team members complete the project
work over and above their responsibilities to normal departmental work. Communication primarily
occurs within the same function.
Projectized
In a projectized environment, the entire company is organized by projects, and the project manager
is in control of the projects. Individuals or employees are assigned to projects and report to a
project manager. One’s the project is over, they need to be assigned to another
project. Communication primarily occurs within the same project.
Matrix
In a matrix organization, the team members report into two bosses: the functional manager and
the project manager. Communication goes from team members to both bosses. The matrix
organization is created to get the best potential from both functional and projectized type of
organizational structure. Team members have departmental work and they also do project work.
Depending on the strength of the matrix organization, the power or level of authority varies
between the project manager and the functional manager. In a strong matrix organization, the
power remains with the project manager. In a weak matrix organization, the power remains with
the functional manager. The project manager is considered to be a coordinator or an escalator. In
a balanced matrix, the power is equally balanced between the project manager and the functional
manager. Organizational Structure
A project operates in with people, process and technology of an organization. Projects have an
impact on the culture, policies, procedures and other aspects of an organization. The
organizational structure has a major influence on the execution of the project. The organizational
structure decides the resources, communication methods and other aspects of project
management.