PMP prep exam free online course - organization structure
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PMP prep exam free online course - organization structure

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PMP prep exam free online course Introduction &the environment in which project operate - 

organization structure


We will complete Introduction & the environment in which project operate section. In the previous modules (Introduction & the environment in which project operate - part 1) , (PMP prep exam free online course -Introduction &the environment in which project operate - part 2)  and (PMPprep exam free online course Introduction &the environment in which project operate - part 3- Stakeholders) we took: 


1- Project. 
2- Operational Work.
3- Project Management.
4- Program.
5- Portfolio.
6- Project Management Office (PMO).
7- Objective.
8- Constraints
9- Stakeholders

In this module we will take:


10- Organizational Structure.



-  Organizational Structure.


Organizational Structure of a company affect which department is powerful, which department have more decision-maker, which department is weaker…, etc.
Therefore, an Organizational Structure is one of the main factors affecting projects in an organization.

Depending on a market conditions, competition, industry, and history of a company different organization can be adapted by companies at different times.

There are three types of organization in term of project management in a company.
- Functional
- Projectized
- Matrix


- Functional organization.


Functional organization is the most common form, it is adapted by many multi-national and big companies in many industries.

In functional organization people are grouped by areas of specialization. For example, marketing professions are grouped under marketing department, human resources professions are grouped under human resource department…, etc.

And depending on the size of these groups’ mangers, directors, vice president lead these groups.

If department will need information or initiate a request for another department this will transmit through the head of department. For example, if marketing department need a new software to ease the marketing activities the marketing department will communicate of the IT head of department ask this software request.

In functional organization team member do both project work and department work.
For example, if a software engineer in IT department is assigned to project, he has to complete his assigned in the project in other hand, if there are a defect or problems need to resolved which under the responsibility of the software department he has to deal with these as well.

The below figure is example of Functional Organizational Structure.





You will see grey background staff are engaged to project activities and white background staff are dedicated to department activities.

As you can see several staff from different departments work in a project functional organization and tern back to department work when the assigned project is finishes.

Project coordination is done over the functional managers of each department.


- Projectized organization.


In projectized organization structure the entire company is organized by projects. So, the resources of the project are fully dedicated to project activities.

Project managers have control of projects.
Resources only reported to project manager and project manager has the ultimate control of resources.

There are not any departments so, resources do not belong to departments they report to project manager only and when project is over personnel is either assigned to a new project or need to find a new job.

The figure below is example of Projectized Organizational Structure.




Staff background in grey are engaged to project activities. As you can see, they all belong to the project activities, there are not other alternative.

Project coordination is done over each project.


- Matrix organization (projectized + functional)


Attempt to get strengths of projectized and functional organization. 

Projectized organization ensure the dedication of project resources to the project. Therefore, projects have higher probability of succeed and functional organizations ensure stability of the organization since the resources return back to the departments once the project is over.

Therefore, matrix organization aim to get benefits of these two organizations structure.
In matrix organization team members report to project manager and functional manger.
Matrix organization is divided in three subcategories

- Strong Matrix.
- Balanced Matrix.
- Weak Matrix.

The below figure show how power of function managers and project managers switches in each type of matrix organization 



You will see strong matrix organization are closed to projectized organization. Therefore, power result is more in project manager.

Weak matrix organization are closed to functional organization. Therefore, power result more in function managers.

Balanced matrix organizations are in middle and power of function and project manager are equal.

In weak matrix organization project manager generally have two roles:

-The first one is project expediter.

Act as staff assistance and communications coordinator. They cannot take any decisions. They do the paperwork of the project, deal with administrate of issues such a communication between departments…, etc. they do not have any influence on the project resources.

-The second type of roles is project coordinator.
Project coordinator act like project expediter but has some power and can take some decisions.

The below figure example of a Weak Matrix Organization 





As you see grey back grounded staff are assign to project and reporting mainly to function managers.

Project coordination is done over the assigned staff may be with a help of project expediter or coordinator.

The below figure example of Balanced Matrix Organization


As you see grey back grounded staff are assign to project. Project resources including the project manager reported to their function manager, but project coordination is done with a control of project manager. 

Function managers are also having power and influences on the resources.

The below figure example of Strong Matrix Organization.





As you see grey back grounded resources belong to the project. 

Project managers coordinate and manage these resources and project activities.

-Different between the balanced and strong matrix organization.



The difference is project manager report to the managers or project managers in strong matrix organization. For example, head of project managers office.


In a balance matrix organization project manager was reporting to function manager.






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