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Organizational Structures In Project Management

One aspect of project management that utilised to obtain very a bit of attention within the 1950s and 1960s was the project organizational structures. A myriad of new organizational structures have appeared on the scene inside the last couple of decades but they still lack a lot of of the desirable qualities in the standard approaches. Ultimately, project management directors seek organizational techniques that facilitate teamwork, can maximize the use of limited resources, efficiency and high quality inside the way a project is completed and how goals and objectives are achieved. This write-up will examine the three main traditional organizational structures for project management. These 3 structures are functional organization, project organization and matrix organization.

Functional Organization

This structure is by far the oldest of the organizational techniques but remains one of the most effective. This strategy performs best when used for routine function functions and also the upholding of quality and work standards. Functional Organization structures assign projects in two diverse ways. One way involves the project becoming assigned to a distinct functional manager who then coordinates with the other departments for them to every contribute. Alternatively, projects may be shuffled around to different departments where every department manager ensures that their parts of the work have been completed.

This method doesn’t work extremely successfully when used in facilitating complex projects. Among the major criticisms of this organizational structure will be the lack of built-in employee recognition, measurement and reward for project performance. Similarly, there’s really little individual accountability for any project management tasks that need to be performed.

Project Organization

Project Organization is a structure that’s particularly created for executing projects. It really is particularly tailored to meet the demands of complex projects by isolating exclusive function and maintaining a strong focus on completing the project. When the project is completed, this structure disbands. This structure is powerful in maintaining dedicated resources all through the life of the project.

The significant criticism of this structure is that it’s inefficient in transferring technology along with the use of resources. Also, by the time the members actually start acting as a cohesive team, the project is over and also the organization dissolves. Because this project has dedicated resources throughout its life, major inefficiency ensues when you will find underutilized workers during particular parts of the project.

Matrix Organization

Matrix Organization is actually a project management structure that evolved from the recognition of inherent flaws inside the Functional Organization and Project Organization structures. Produced inside the 1970s, this structure combined the very best components of these two structures. This model functions very well when you’ll find multiple projects being coordinated at when. The functional managers oversee the staffing, training, job assignment and evaluation of the project’s personnel. The functional specialists are assigned 1 or far more projects and oversee that these individualized projects’ achieve their objectives are completed through maximum resource efficiency.

In spite of its recognition and avoidance of the flaws involved in other structure, Matrix Organization still does have some issues of its own. Individual workers report to a minimum of two managers which can often lead to ambiguity and conflict. These issues might be avoided by way of very good communication and solid leadership between managers.

This post simply supplied an overview of many project management organizational structures. Functional Organization, Project Organization and Matrix Organization are the 3 most conventional project management structures that are still employed right now simply because of their effectiveness. However, do remember that there are plenty of other approaches accessible that may better suit your firm’s scenario. Nevertheless, the type of organizational structure that needs to be chosen by your firm depends on the type of project as well as the objectives and goals that it ultimately aims to accomplish.

You could also read another post about this subject, Three types of Project Management Organizations.

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