PMP prep exam free online course- Introduction & the
environment in which project operate -
Advantages and disadvantages of different organizational structure.
In the previous article (PMP prep exam free online courseIntroduction &the environment in which project operate - part 4 -organizationstructure) we took the types of organization structures, during this articles we will going to explain the advantages and disadvantages of each organizational structure functional, projectized, and matrix organization respectively.
- Advantages of functional organization.
Because resources specialists in an area report to same
manager who knows the domain or area as well.
* Team members report to only one supervisor.
This reduced the conflicts of reported to both project and
function manager.
* Similar resources are centralized.
For example, software developers to IT department. This
ensure the sustainability of an organization.
* Clearly defined career paths in areas of specialization.
Because the staff belong to the departments specialized in
an area and improvement skills, knowledge, and competence in that
specialization can be proposed as career path for the resources.


- Disadvantages of functional organization.
* People place more emphasis on their functional specialty to the detriment of the project.
Because the ultimate manager is the function manager. Although, there are assigned to a project they take a direction of their function manager more seriously compare to a project manager.
* No career path in project management.
The project manager has a
little or no authority because staff mainly report to function manager and
therefore, project manager is not having that much power or influence on
project team.
- Advantages of projectized organization.
* Efficient project organization.
Because all resources of
the project are dedicated to the project task and assignments. This dedication
automatically increases the focus of the team members for the successes of the
project.
* Member of project team is more loyalty to the project.
Because the ultimate
manager is project manager. The success of project directly depends on a team
member and this increase the loyalty to the project, respectively.
* More effective communications than functional.
Because team members are
dedicated for a project and there existing in an organization is sole for the
project they are working for. Project teamwork in same location and even in the
same room in projectized organization, it is increasing the effective and
efficient communication among the project team.
- Disadvantage of projectized organization.
* No home for the project resources when project is finished.
This is the most important
disadvantages. Since there are not departments for resources based on the
specialties, if there is not be a new project resources are released at the end
of the project.
* Lake of professionalism in disciplines.
For example, a software
engineer work in a project at the end of the project if he leave the
organization because there is no new project, this cause the organization loose
professionalism disciplines.
* Duplication of facilities and job functions.
Tools and resources of a
project belong to only one project in projectized organization.
For example, a project
need a testing tool to complete the quality assurance activities in a project,
if the same tool will be needed for second project in the organization a new
tool need to purchase for the new project team since the existing tool sole
belong to the first project team. This cause duplication of the same testing
tool for the second project and additional cost for the organization effectively.
* Less efficient use of resources.
Since project resources
are dedicated to a project even if a resource is not 100% utilize that resource
cannot be allocated to another task.
- Advantages of matrix organization.
* Highly visible project objectives.
What needs to be achieved
to complete the project successfully are clearly defined and understandable by
the project team.
* Improved project manager control over resources.
Because the team members
of the project are reporting to the project manager as well and this gives
respective authority to the project manager.
* More support from functional areas.
Because resources are
grouped based on their specializes and in case of a lake of technical
knowledge, resources can consult to senior or managers on the same function
domain.
* Maximum utilization of scarce resources.
For example, if the
software engineer needs to support a project for only two days, he is can
assign to other projects or activities for the remaining days of the week.
* Better coordination.
* Better horizontal and vertical dissemination of information.
Every resource belongs to
a function and he has a functional manager, if he assign to a project, he is
report to a project manager as well. This structure strengthening the dissemination
of information and better coordination of the staff.
* Team members maintain a “home “
So, even if they are
released from project they turn back to their department and do department
mental work or when a new project is initiated, they can be reassigning to new
project.
- Disadvantages of matrix organization.
* Extra administration is required.
Because there will be two
managers of a resources, function manager and project manager. Also, will be
several resources from different function disciplines in a project. This will
bring additional administration for sure.
* More than one boss for project team.
* More complex to monitor and control.
Because there are several
disciplines and will be several resources from the several functional departments
in the project. This will require management and coordination of different
functional managers. Therefore, it is more complex.
* Tougher problems with resources allocation.
The main reason if this is
there are a lot of projects need resources from a single function department.
For example, the software
project in a company, software engineers’ resources will be requested from the
software development department, if it is a lot of projects initiated this will
cause resource allocation problems, respectively.
* Need extensive policies and procedures.
Since there will a lot of
function departments and resources, in order to avoid conflicts, these need to
be supported with the policies and procedures.
For example, how to
request resources for the project, how priorities the projects if they ask the
same resources, how to release the project team members, etc. need to document
clearly to avoid any misunderstanding between the departments.
* Functional managers may have different priorities than project managers.
* Higher potential for conflict.
For example, a department has
own works and a project manager is require a new resource from this department,
the function manager not need to assign this resource to the project since he
want to complete the department work first. These kinds of conflicts may raise
in matrix organization.