Project Management Organizational Structure & Types: Functional, Matrix & Projectized - AIMS UK

Summary

The video script discusses how different organizational structures—functional, projectized, and matrix—affect the authority of project managers and the way projects are managed. It explains the characteristics and pros and cons of each structure. Functional organizations have hierarchical structures where authority lies with functional managers. In projectized organizations, the project manager holds full authority. Matrix organizations blend both structures, with varying degrees of shared authority between project and functional managers, ranging from weak to strong matrix setups. The advantages and challenges of each structure are also highlighted.

Takeaways

• 🏢 Organizational structures influence the authority of project managers and the execution of projects, categorized mainly into three types: Functional, Projectized, and Matrix.
• 🔄 A Functional organization groups people by their specialization, with authority held by functional managers. This structure suits organizations with ongoing operations like manufacturing.
• 🧑‍💼 In a Projectized organization, authority lies with the project manager. The focus is on project work, and team members report directly to the project manager.
• 🔀 Matrix organizations blend features of both Functional and Projectized structures, with employees reporting to both a functional manager and a project manager.
• 💪 A Strong Matrix structure gives more authority to the project manager, similar to a Projectized organization, with most team members dedicated full-time to projects.
• ⚖️ In a Balanced Matrix, authority is shared between the functional manager and the project manager, with both having control over resources and project decisions.
• 🛠️ A Weak Matrix structure is closer to a Functional organization, with the project manager having a part-time role and limited authority, mainly serving as a coordinator.
• 📊 The advantages of a Functional organization include stability, a clear chain of command, and well-defined career growth paths. However, project managers have little formal authority, and resources often compete.
• 🚀 Projectized organizations offer strong communication, fast decision-making, and clear authority. However, they can lead to stress, arrogance, and high costs if projects extend over time.
• 🕹️ Matrix organizations provide visible project objectives and better control over resources but require more administration and complex monitoring due to dual reporting lines.

Q & A

What are the three main types of organizational structures mentioned in the transcript?

The three main types of organizational structures mentioned are functional, projectized, and matrix structures.

What distinguishes a functional organization from a projectized organization?

In a functional organization, authority rests with the functional manager, and employees are grouped based on specialization. In a projectized organization, authority is with the project manager, and the focus is on the project, with team members reporting directly to the project manager.

What are the three types of matrix organizational structures?

The three types of matrix organizational structures are strong matrix, balanced matrix, and weak matrix.

How does the authority of the project manager differ in a strong matrix versus a weak matrix organization?

In a strong matrix, the project manager holds significant authority, similar to a projectized organization. In a weak matrix, the functional manager holds most of the authority, and the project manager has a more limited, part-time role.

What are the advantages of a functional organizational structure?

Advantages of a functional organizational structure include a stable hierarchy, clear chain of command, and opportunities for career growth within specialized functions.

What are the disadvantages of a projectized organization?

Disadvantages of a projectized organization include the potential for the project manager to become overly authoritative, a stressful work environment due to deadlines, and high costs if the project extends over time.

What is the role of the project manager in a balanced matrix organization?

In a balanced matrix, the project manager shares authority with the functional manager. The project manager holds a full-time role but may only have part-time administrative support.

What are the benefits of using a matrix organizational structure?

The benefits of a matrix structure include highly visible project objectives, improved control over resources, and more support from functional areas.

What challenges might arise from using a matrix organizational structure?

Challenges of a matrix structure include extra administrative overhead, complex reporting with multiple bosses for team members, and difficulties in monitoring and controlling projects.

In which type of organizational structure does the project manager have full control over the project budget?

The project manager has full control over the project budget in a projectized organization.