1. Chapter # 3 Project & Organizational Structure

2. ORGANIZATIONAL STRUCTURE
Three Basic Organization Structure
Functional Structure
Project Structure
Matrix Structure

3. FUNCTIONAL ORGANIZATIONAL STRUCTURE
Functional organization structure in which authority rests with the functional heads; the structure is sectioned by departmental groups.
 Most Common & Traditional
Activities are assigned based on expertise

4. FUNCTIONAL ORGANIZATIONAL STRUCTURE
C.E.O
VP Finance
VP Marketing
VP Manufacturing VP
Personnel

5. FUNCTIONAL ORGANIZATIONAL STRUCTURE

6. FUNCTIONAL ORGANIZATIONAL STRUCTURE
Project Coordination
Red boxes represent staff engaged in project activities

7. FUNCTIONAL ORGANIZATIONAL STRUCTURE
Advantages
Simple
Lines of communication within department are well established
Clearly defined responsibility and authority for work within the departments

8. FUNCTIONAL ORGANIZATIONAL STRUCTURE
Disadvantages
Complete Responsibility for the entire project missing because the functional units are responsible for the their own activities.
Competition & conflict between functional departments
Department work may take priority over project work

9. PROJECT ORGANIZATION STRUCTURE
Suitable to projects that are very large & complex and/or geographically located away from the parent organization.

10. PROJECT ORGANIZATION STRUCTURE

11. PROJECT ORGANIZATION STRUCTURE
Advantages
The project manager has full line authority over the project
Because the authority is centralized, the ability to make a swift decision is enhanced
Accountability is clearly placed in one person

12. PROJECT ORGANIZATION STRUCTURE
Disadvantages
Uncertainty about job after the project
Difficult to share individuals/expertise across projects

13. MATRIX ORGANIZATION STRUCTURE
An organization structure that assigns specialists from different functional departments to work on one or more projects being led by project managers.

14. MATRIX ORGANIZATION STRUCTURE
Advantages
Authority and responsibility are shared
Stress is distributed among the team

15. MATRIX ORGANIZATION STRUCTURE
Disadvantages
PM controls administrative decisions. functional managers control who will be assigned to the project, This thing may create conflict.

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