Functional Organization This structure is by far the oldest of the organizational methods but remains just about the most successful. This method performs best when utilized for routine work functions and the keeping of quality and also work standards. Functional Organization structures assign projects in two alternative ways. One method involves the project being delegated to a specific functional manager who then coordinates together with the other departments for them to each contribute. Alternatively, projects can be shuffled around to different departments in which each department manager signifies that their parts of the work have been done.
This method does not work very well when used in facilitating complex projects. One of the major criticisms of this organizational structure would be the lack of built-in personnel recognition, measurement as well as reward for project performance. Similarly, there's very little individual responsibility for any project management tasks which need to be performed.
Project Organization Project Organization is a structure which is designed for accomplishing projects. It is specifically tailored to satisfy the demands of complex projects by isolating unique work and also maintaining a steady focus on finishing the task. As soon as the project is finished, this structure disbands. This structure is effective in keeping dedicated resources across the life of the project.
The major criticism of this structure is that it is inefficient in transferring technology and also the use of resources. Also, by the time the members actually begin acting as a cohesive team, the project is over and the organization dissolves. Since this project has dedicated resources throughout its life, major inefficiency ensues when there are underutilized employees during certain parts of the project.
Matrix Organization Matrix Organization is a project management structure which evolved from the popularity of inherent flaws in the Functional Organization and Project Organization structures. Built in the 70s, this structure combined the most beneficial components of these two structures. This model functions very well when there are multiple projects being directed at once. The functional managers oversee the staffing, training, job assignment and evaluation of the project's employees. The functional specialists are assigned one or more projects and oversee that these individualized projects' achieve their objectives are finished through optimal resource efficiency.
Despite its recognition and also avoidance of the flaws involved with other structure, Matrix Organization still has some challenges of its own. Individual personnel report to at least two managers which can often lead to ambiguity and conflict. These issues can be avoided through good communication and solid leadership within managers.
This post only provided an overview of several project management organizational structures. Functional Organization, Project Organization and Matrix Organization are known as the three most traditional project management structures which are still used today due to their effectiveness. However, do keep in mind that we now have plenty of other methods available that may better suit well with your firm's situation. Nonetheless, the type of organizational structure that should be chosen by your firm depends on the type of project as well as the objectives and also goals that it in the end seeks to achieve.
