This document discusses different project organization structures. It describes functional, projectized, and matrix structures. Functional structures group employees by specialty and have clear lines of authority, but project managers have limited power. Projectized structures give project managers full authority over dedicated project teams, but teams disband after projects. Matrix structures balance functional and project needs by giving employees two reporting lines. The document also notes advantages and disadvantages of each approach.

1. PROJECT MANAGEMENT
YEAR 2023/2024
NAME: ANSHU BARMASE
DEPARTMENT OF CIVIL ENGINEERING
G.H. RAISONI COLLEGE OF ENGINEERING
HINGNA NAGPUR
Project Organization

2. Organization Designs
 Organization is a social entity that has a collective
goal and is linked to an external environment.
 The purpose of an organization to coordinate the
efforts of many to accomplish goals.
 There are a number of options, functional (pyramid
of hierarchy), project, and matrix organization
 Project Managers need to understand relative
advantages and disadvantages of each

3. Organization Structure
 Represents the management hierarchy:
 Reporting relationships who report to whom
 The official chain of control or authority, which deals
of official activities, such firing, hiring, and promotion.
 Organization can be grouped into major
subdivisions on the basis of a number of
frameworks.
 Responsibilities & type of work for each
subdivision
 Official lines of authority & communication
Informal organization also important and can exist in
parallel to the official organization, communication of
the informal is socially motivated.

4. Alternative Structures
 There are a number of options
 Best depends on goals, type of work it
supposed to do, and the environment
within which it operates.
 Forms of organization structures are:
Functional organization
Project organization
Matrix organization

5. Functional Organization
This type relies on formal rules, procedures,
coordinated plans, budgets, fairly common,
segmented by department and their functions.
works well in repetitive, stable environments
Bean Kounter
Accounting
Silas Marner
Finance
Snidely Whiplash
Marketing
Atlanta Phoenix Butte
John Doe
Production
Siegfried Hill
MIS
Hieronymus Botch
CEO

6. Functional org…
 A functional organization is the most common type of the
three.
 It works best in small organizations in which the different
sections are geographically close together and which provide
only a small number of goods and/or services.
 In a functional structure, the organization is broken into
different sections based upon specialty. For example, there
may be one area for sales, one for customer service and one for
the supervisors who deal with escalated problems.
 The project manager's role is to ensure smooth execution of
processes and projects; however, the functional manager
has the most power and makes the final decisions.

7. Types of Functional org
 Geographic Differentiation
 Product Differentiation
 Customer Differentiation
 Process Differentiation

8. Advantages of Functional Organization
An advantage to the functional structure is the role
of the functional manager, which means there is
only one boss. This reduces or prevents conflicts of
interest and makes it easier to manage specialists:
 Clear line of authority
 Career development
 Comfortable and easy
 Technical expertise
 Flexible resource assignment

9. Disadvantages of functional org.
A disadvantage of this type of structure is that the project
manager has limited authority and a limited career path.
 No accountability over complete project
 No project emphasis
 Low coordination across function
 No customer focal point
 Low delegation of authority
 Work delays due to red tape
 Heavy politics
 Lack of a big picture view

10. Projectized Organization
 Projectized organization is a project focused organizational
structure where project manager has the
final authority over the project to make project decisions,
priorities, acquire and assign resources.
 A projectized organization refers specifically to an
organizational structure that has been set up in a manner
in which the project manager leads the group and in which
the project manager has the ultimate authority to make
any and all decisions involving the organization.
 In a projectized structure, all the work is looked at as a
project. The project manager has complete control, unlike
in the functional structure, and all team members report
directly to the project manager.

11. Projectized Organization
 Sometimes these team members are permanent, and
sometimes they are hired as temporary workers to help
with the project until its completion. If the organization
takes on a large project, it will have all the necessary
resources available to sustain the project and will act as a
small, self-contained company.
 The project manager works with complete autonomy
(central authority, power) over the project, team is on the
project full time and report to the project manager.
 As a project manager, you have the responsibility to take
authority, rather than waiting for someone to give you the
authority.

12. Project Organizations
(advantages and disadvantages)
 Advantages to the projectized structure include the project
manager's opportunity for career progression. In addition,
because good communication exists within the project work, the
team members tend to be more committed to, and excel in, their
responsibilities.
 The disadvantage of a projectized structure is that, because the
team breaks up and disperses after the completion of the
project, there are no long-term goals or sense of job security for
the rest of the workers. Another disadvantage is that the
organization has to essentially clone the same resources for each
project (project manager, work area, administrator).

13. Comparison between organizations types
There are several differences between projectized and other types of
organizations:
- In projectized organizations, the Project Manager has all the
authority he wants, as opposed to matrix and functional organizations,
where the Project Manager has no or little authority.
- The Project Manager owns the resources, as opposed to matrix and
functional organizations where he borrows the resources.
- Resources are only allocated to projects
in projectized organizations.
In other types of organizations, resources report to their functional
managers and usually do routine, non-project work.

14. More Advantages of Project organization
 The main advantage of having a projectized
organization is that decisions are made much faster
due to shorter communication paths.
 Additionally, project managers have real authority
and the team is more loyal, more dedicated, and is
not disturbed by the problem of "multiple managers"

15. Project Organizations
PURE PROJECT organization involve creating a separate
independent organization specifically for accomplishing a
particular goal.
The pure project organization is characterized by the usually
great importance, the large scope, the large uncertainty, the high
time pressure, the long duration and the high complexity of the
project
TYPES: - Project Center
- Stand-Alone Project
- Partial Project

16. Project Center
- Is linked to parent organization to draw resources &
personnel as needed
EXAMPLES:
 General Motors task force to develop suggestions for
downsizing
 Relocation operations

17. Stand-Alone Project
- Newly created organization for this mission drawn from
several organizations
EXAMPLES:
 Large-scale public works
 NASA space station development
 Construction joint-ventures

18. Partial Project
- Project manager responsible for some activities
other activities (support-oriented such as accounting) remain
with functional divisions.
This is a common.

19. Pure Project Disadvantages
- Cost in personnel (facility duplication)
- Lose training investment
- Team members do not feel secure
- Inefficiency, no place else to use key people
- High risks in early project phases.

20. Matrix Organization
- It is used mainly in the management of large projects or product
development processes, drawing employees from different functional
disciplines for assignment to a team without removing them from their
respective positions.
- Matrix management is a type of organizational management in
which people with similar skills are pooled for work assignments.
- The matrix structure combines both the functional and projectized
structures. Each team member has two bosses; they report both to the
functional manager and the project manager.
- If the matrix is strong, the power resides more with the project
manager.
- If the matrix is weak, the power resides more with the functional
manager.
- The key is to find a balance in which the power is shared equally.
- Because of its complexity, this type of structure can lead to problems if
it is not used carefully and properly. Good communication is essential
for success.

21. Matrix organization

22. Matrix organization

23. Advantages of Matrix Structure
Advantage to the matrix structure lies in the efficient use of resources because of
ease of access. This structure also demonstrates efficient communication both
vertically and horizontally.
Because of this, once the projects have ended, the team members are likely to
receive a job elsewhere in the organization.
The advantages of a matrix include:
- Individuals can be chosen according to the needs of the project.
- The use of a project team which is dynamic and able to view problems in
different way as specialists have been brought together in a new
environment.
- Project managers are directly responsible for completing the project within
specific deadline and budget.
- Required resources can be managed moving into and out of the project
team
- Project cost is lessened because resources are used as needed
- There are an appropriate focus on the project objectives through a single
PM
- The overall enterprise utilization of resources is better handled in the mode

24. Disadvantages of Matrix
 A disadvantage of the matrix structure is complexity, which can
be difficult to manage.
 For example, if the functional manager and the project manager
do not communicate well, the team members can be caught in
the middle, causing confusion.
The disadvantages include:
- A conflict of loyalty between line managers and project
managers over the allocation of resources.
- Projects can be difficult to monitor if teams have a lot of
independence.
- Costs can be increased if more managers (ie project mangers)
are created through the use of project teams.

25. Matrix Problems
 Unclear lines of authority, Two bosses, dual
reporting
“No Man Can Serve Two Masters!”
military principle of UNITY OF COMMAND
 chaos, confusion more common
 often project manager tells you what to do, but
your raise comes from functional manager
 Success highly depends on individuals

26. Matrix Capabilities
 Functional part provides repository for technical
expertise and physical resources
 When in functional home, workers keep up
professionally (train)
 Functional homes a place to go when project over
(no new job search)

27. Hybrid Organization
 "Hybrid organizations" are those that combine the three
elements of people, workplace and technology in equal
measure. A successful organization would be one that
empowered its people to work in the way they would be most
productive, allowing them to be measured by outputs –
empowered through innovative and flexible workplace design
and a range of technologies and tools that help them do their
jobs more effectively.
 "The Hybrid Organization" is a business concept created by
Microsoft in 2010. Working with experts from the fields of
social change, workplace design, economics, technology and
public sector development. Microsoft identified several
characteristics of businesses and organizations that are best
placed to thrive in uncertain times.

28. Hybrid Forms
 Firms combine matrix, functional, project
features, custom design their own
organization.
 COST CONTROL: Project matrix best, functional worst
 SCHEDULE: project best, functional worst
 TECHNICAL: functional worst

29. Know when it’s time to leave
 You have no choice about team member
 Your sponsor insist that people multitask and won’t
take “no” for answer.
 You are supposed to contribute technically to the
project
 All your project starts with insufficient resources
 You hear that “you’re not a team player all the time”

30. When you are not right for the project
 You do not know enough to manage this project
 Your manager inflict (impose) help on the team and
you can not push back
 You know too much to mange this project

31. Cellular organization: small work groups with people
skilled in each required task were organized together.
Liaisons: are used to integrate two groups not part of the
same organization, useful between the people who fund the
project and the project team.
Task forces: Temporary grouping of individuals to solve a
particular problem.
Expediters (coordinators): are individuals whose jobs
is to make sure that something happens, no authority but they
inform the project manager of the need for additional
resources. Pushes for speedy completion of work.

32. Summary
 organization structure is means to achieve
goals & respond to problems
 differentiation
 project organizations more flexible
 need to know criteria for appropriate project
organization structure