1. 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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2. Project Management Organization Structures
Three main types organization structures used in projects:
Functional project organization
Pure project organization
Matrix project organization
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3. Functional Project Organization
Project Coordination
General Manager
Functional Manager
Functional Manager
Functional Manager
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
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4. Functional Project Organization
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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5. Functional Project Organization
Characteristics of projects suitable for this organization structure:
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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6. Pure Project Organization
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.
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7. Pure Project Organization
Project Coordination
General Manager
Project Manager
Project Manager
Human Resources
Worker
Worker
Marketing
Worker
Worker
Finance
Worker
Worker
Legal
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8. Pure Project Organization
Projectitis
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.
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9. 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.
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 they report to.
Team members could be working on multiple projects.
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10. Matrix Project Organization
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.
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11. 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”
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12. Lightweight Matrix Project Organization
General Manager
Functional Manager
Functional Manager
Functional Manager
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Worker
Project coordination
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13. Lightweight Matrix Project Organization
In lightweight structures ...
Representatives from each functional unit
perform coordination and support.
Functional managers have real power.
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.
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14. Heavyweight Matrix Project Structure
General Manager
Functional Manager
Functional Manager
Manager of Project Managers
Worker
Worker
Project Manager
Worker
Worker
Project Manager
Worker
Worker
Project Manager
Project Coordination
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15. Heavyweight Matrix Project Structure
In heavyweight structures ...
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.
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16. Heavyweight Matrix Project Structure
Characteristics of the project leader
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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17. Evaluating Alternative Organizational Structures
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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18. Evaluating Functional Organization
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19. Evaluating Pure Project Organization
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20. Evaluating Matrix Organization
Strengths Weaknesses
Single point accountability Manager skill level high
Customer interface clear Competition for resources
Rapid reaction Employee recognition
Duplication reduced Management cooperation required
Technology development
Career development
Disbanded easily
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