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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