FUNCTIONAL ORGANIZATION: A functional organization structure is a classical hierarchy in which each employee has a single superior. Employees are then organized by specialty and work accomplished is generally specific to that specialty. Communication with other groups generally occurs by passing information requests up the hierarchy and over to the desired group or manager. Of all the organizational structures, this one tends to be the most difficult for the project manager.
The project manager lacks the authority to assign resources and must acquire people and other resources from multiple functional managers. In many cases, the projects priority is viewed lower than operations by the functional manager. In these organizations, it is more common for the project manager to appeal to the senior management to resolve resource issues.
ADVANTAGES AND DISADVANTAGES:Serial ADVANTAGES DISADVANTAGESNo.1. Specialization Double Command2. Better Control Problem of Succession3. Reduction of work load Delay in Decision Making4. Higher efficiency Complexity5 Flexibility Lack of Coordination6. Easier Staffing Expensive
MATRIX ORGANIZATION: A matrix organization is a blended organizational structure. Although a functional hierarchy is still in place, the project manager is recognized as a valuable position and is given more authority to manage the project and assign resources. Matrix organizations can be further divided into weak, balanced, and strong matrix organizations. A weak matrix gives more authority to the functional manager (FM), whereas the strong matrix gives more power to the PM. As the name suggests, the balanced matrix balances power between the FM and the PM. The difference between the three is the level of authority given to the project manager (PM).
ADVANTAGES AND DISADVANTAGES: Serial ADVANTAGES DISADVANTAGES No. 1. Single Project Focus Complex relations 2. Highly Flexible Project Group not homogenous - Low morale 3. Effective Command No unity of Command 4. Better Utilization of Services High concentration on respective functions - Conflict
DIFFERENCE BETWEEN FUNCTIONAL ANDMATRIX ORGANIZATION: Functional Weak Matrix Balanced Strong Matrix Matrix Description Traditional The PM and The PM and FM The PM and FM organization FM share share share with a direct responsibility responsibility, responsibility, supervisor. , with the FM with each with the PM having more having equal having more authority. authority. authority.
Authority of Very low. Low. Low to Medium toproject manager medium. high. Resource Very low. Low. Low to Medium to availability medium. high.Project manager Part-time. Part-time. Full-time. Full-time. involvement
Advantages The FM holds The PM gets The PM and The PM gets accountability some FM share the more for the authority to responsibility authority to project. manage the of the assign project. project. resources and manage the project.Disadvantages The PM holds The FM can The PM and The FM may little or no see the PM FM can be feel out of authority. as a threat confused the loop. and cause about who conflict. manages what.