Project Management Organizational Structure & Types: Functional, Matrix & Projectized - AIMS UK
Summary
TLDRThe 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.
Outlines
🏗️ Organizational Structures and Project Manager Authority
This paragraph introduces how organizational structure influences project management. It explains that organizations can be structured in three primary ways: functional, projectized, or matrix. The matrix structure is further divided into strong, balanced, and weak types. In functional organizations, authority lies with a functional manager, while in projectized organizations, it rests with the project manager. Matrix structures attempt to balance these two approaches, with varying degrees of authority distributed between project and functional managers depending on whether the matrix is weak, balanced, or strong.
🔄 Functional Organization: Structure, Advantages, and Disadvantages
The functional organization is hierarchical, grouping people by their area of expertise under a functional manager with matching knowledge. This structure is suited for ongoing operations like manufacturing and production. Functional organizations are divided into specialized departments (e.g., human resources, finance). Advantages include stability, clear career paths, and a straightforward chain of command. However, project managers have little authority, resources are limited, and team members tend to remain loyal to their functional manager, leading to challenges in managing cross-departmental projects.
🚀 Projectized Organization: Structure, Advantages, and Disadvantages
In projectized organizations, the focus is on the project itself rather than functional areas. The project manager holds all authority, and team members report directly to them, often working exclusively on the project. Advantages include clear authority lines, strong communication, and quick decision-making. However, this structure can lead to power imbalances, making project managers overconfident. The work environment may become stressful due to constant deadlines, and elongated projects can drive up costs.
🔀 Matrix Organization: Weak, Balanced, and Strong Structures
Matrix organizations combine the strengths of functional and projectized structures. Employees report to both a functional manager and at least one project manager. Matrix structures are divided into weak, balanced, and strong types. In weak matrices, the project manager has limited authority and team members spend most of their time on functional tasks. Balanced matrices share authority between project and functional managers, while strong matrices give more power to the project manager, with team members almost fully dedicated to the project. Each type has specific advantages and challenges regarding authority and resource management.
⚖️ Advantages and Disadvantages of Matrix Structures
Matrix organizations provide clear project objectives, improved resource management, and better control over project progress. However, they require additional administration and coordination due to the dual reporting lines. This complexity can make it difficult to monitor and manage projects effectively. The influence of the project manager in a matrix structure varies based on the type (weak, balanced, or strong), impacting their control over budget and staff.
Mindmap
Keywords
💡Organizational Structure
💡Functional Organization
💡Projectized Organization
💡Matrix Organization
💡Strong Matrix
💡Balanced Matrix
💡Weak Matrix
💡Project Manager Authority
💡Functional Manager
💡Hierarchical Structure
Highlights
Organizational structure significantly influences the authority of the project manager and how projects are conducted.
Organizations are structured in one of three ways: functional, projectized, or matrix.
Matrix organization structure is divided into strong matrix, balanced matrix, and weak matrix types.
In a functional organization, project authority rests with the functional manager.
In a projectized organization, authority rests with the project manager, who has all the power.
A matrix organization tries to balance the authority between functional and project managers.
Strong matrix organizations give most authority and power to the project manager.
Weak matrix organizations give most authority to the functional manager, with the project manager in a part-time role.
Balanced matrix organizations share authority between functional and project managers.
Functional organizations are hierarchical, with people grouped by specialization and supervised by a functional manager.
Functional organizations are suitable for ongoing operations such as manufacturing and production.
Projectized organizations focus on the project itself, with the project manager having ultimate authority.
Matrix organizations combine the strengths of functional and projectized structures to minimize differences.
In a functional organization, the project manager has little formal authority and multiple projects compete for resources.
Projectized organizations offer a clear line of authority and strong communication with a single reporting system.
Matrix organizations require extra administration and have more than one boss for project teams.
The influence of the project manager varies significantly across different organizational structures.
Transcripts
[Music]
organizational structure organizational
structure influences the authority of
the project manager and influen that how
projects are conducted all organizations
are structured in one of three ways
functional project do or Matrix Matrix
organization structure is further
divided into three types strong Matrix
balanced Matrix and weak
Matrix project manager Authority and
organizational structures in a
functional organization project
Authority rests with a functional
manager and any proje ised organization
it rests with a project manager a matrix
organization tries to be somewhere in
between these two
in a strong Matrix The Authority is with
a project manager just like in a
projectized organization in a weak
Matrix The Authority is with a
functional manager just like in a
functional organization and in a
balanced Matrix the authority over the
project is shared by both the functional
manager and the project
manager now let us understand the
functional organization a functional
organization structure is a hierarchical
type of organizational structure wherein
people are grouped as per their area of
specialization and supervised by the
functional manager with expertise in the
same field this way their skills can be
effectively utilized and the
organization's objective can be achieved
the functional organizational structure
is suitable for an organization which
has ongoing operations such as
manufacturing and production INF
functional organization is divided into
various specific Department departments
like human resource marketing finance
and
operations the below figure represents a
classic functional organization where
each employee has one clear Superior
grouping occurs from top level down to
the bottom level for example accounting
engineering or marketing Project work of
each group is performed independently
from other
groups now let us see the advantages and
disadvantages ages of a functional
organization its advantages are as
follows it is a stable organization
structure employees have a career growth
path with separation of functions
employees have one supervisor with a
clear chain of command disadvantages of
functional organization are as follows
project manager has little to no formal
Authority multiple projects compete for
limited resources and priority and
project team members will likely to
remain loyal to their functional
manager proje ised
organizations proje ised organizations
are nearly the opposite of functional
organizations the focus of this type of
organization is the project itself the
idea behind a projected organization is
to develop loyalty to the project not to
a functional manager in a projectized
organization the project manager has all
the power and authority and everybody
directly reports to the project
manager the following figure illustrates
a proje ised
organization team members are often
collocated team resources can either
report directly to the project manager
or Provide support services to the
various projects and project managers
almost always have ultimate authority
over the project in this structure and
Report directly to the chief executive
officer now let us see the advantages
and disadvantages of a project ised
organization its advantages are as
follows it has a clear line of authority
strong Communications with a single
reporting system and flexibility in
tradeoffs and fast
decision-making the disadvantages of
projectized organizations are as follows
Authority and power can make the project
manager arrogant the work environment
can be stressful because there is always
a deadline if the project gets elongated
the cost of employees and Equipment can
go
higher let's understand the Matrix
organizations Matrix organizations came
about to minimize the differences
between take advantage of the strengths
and reduce weaknesses of the functional
and proje ised
organizations the best of both
organizational structures can be
realized by combining them into one
employees in a matrix organization
report to one functional manager and to
at least one project manager a matrix
organization structure is further
divided into three types they are weak
Matrix balance Matrix and strong
Matrix weak Matrix in a weak Matrix the
project manager has a part-time role
with very limited power and authority
the team members are only assigned to
projects for 25% or less of their time
for the rest of the time they go back to
functional assignments the role of
project manager will be more like a
coordinator or an
expediter a weak Matrix structure is
very close to the functional
organization
structure the below figure reflects a
blend of functional organizations which
is classified as a weak Matrix structure
the project expediter works as a staff
assistant and Communications coordinator
but they do not make or enforce
decisions project coordinators make some
decisions because they have some
Authority and they report to a higher
level
manager balanced Matrix in a balanced
Matrix power is shared between the
functional manager and the project
manager although the project manager has
a full-time role he has only part-time
project management administrative staff
under him up to 60% of the project team
in a balance Matrix structure are
full-timers in a balance bance Matrix
structure the project manager is
assigned on a full-time basis however
support staff are usually part-time
rather than being fully dedicated to the
project strong Matrix in a strong Matrix
most Authority and power lies with the
project manager the percentage of people
on the project team assigned and
dedicated to a single project may run as
high as
90% in a strong Matrix the project
manager is assigned full-time and has a
full-time support staff however the
support staff still have dual reporting
lines with both their functional
managers and the project
manager following are the advantages and
disadvantages of the Matrix organization
structures advantages of Matrix
organization are as follows it has
highly visible project objectives it
improves project management control over
resources it has more support from
function
areas the disadvantages of a matrix
organization are as follows it requires
extra Administration it requires more
than one boss for project teams it is
more complex to Monitor and
control the influence of project manager
in different organizational structures
is explained Below in functional
organization structure the project
manager has little or no Authority and
is often a part-time person that has a
part-time time project management
administrative staff the functional
manager manages the project budget the
functional structure is the weakest of
all in a weak Matrix the project manager
has limited Authority the role of
project manager is part-time and it may
have part-time administrative staff to
help expedite the project the functional
manager manages the project
budget in a balanced Matrix the project
manager has reasonable Authority the
role of a project manager is full-time
who may have part-time administrative
staff to help expedite the project both
functional manager and project manager
manages the project
budget in a strong Matrix the project
manager has a reasonable to high level
of power and manages the project budget
the role of a project manager is
full-time and it has a full-time
administrative staff to help expedite
the
project in a projectized organization
structure the project manager holds the
highest Authority and manages the
project budget the project is managed by
full-time project manager and
administrative
staff
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