Project Management — 1.4 How a project is Managed in Different Organizational Structures?

Organizational Structures

In the very outset, it is important to mention here that in the previous article we discussed about different Project Development Life cycles that how and when we apply different models as per the requirements of the client. Now, we will move towards exploring different organizational structures that how a project is managed there, and how far a project is managed with the best practices and true essence of Project Management.

1) Flat/Organic Organizational Structure:

Flat Organizational structure is said to be “Flat” because there is no organization in this structure. In other words, there is no hierarchy in the structure. Simply, there is utterly no concept of senior junior. For instance, some university friends after graduation set up a software House. There is no one senior and Project Management Practitioner to be entitled the position of Project Manager. They all collectively act as Project Managers. Resultantly, those organizations remain deprive of good project management skills.

2) Functional Organizational Structure:

In functional Organizational Structure, a project is managed by “Functional Managers”. In other words, the accountability of the project goes to all Functional Managers. They all take “How Know” of 10 Knowledge Areas (Scope Management, Schedule Management, Quality Management, Resource Management, Procurement Management, Stakeholder Management, Risk Management, Cost Management, and Integration Management) of Project Management. In this way, Functional Managers become overburdened doing routine work plus Project work (working on 10 knowledge Areas). The biggest drawback of this organizational structure is that there is no skilled Project Manager who is certified practitioner of those 10 Knowledge Areas. Every Functional Manager is asked to become the expert of 10 knowledge areas and manage the project. In case of any uncertainty, they play blame-game against one another. Silo-Mentality is also found in Functional Managers that harms the smoothing process of the organization.

3) Strong Matrix Organization:

In Strong Matrix Organizational Structure, there is a separate hierarchy of Project Managers along Functional Managers. Project Managers, do their relevant work according to (10 Knowledge Areas) of Project Management. Similarly, Functional Managers are bound to dispense their duties in functional domain. So, there is no mess up between the processes, instructions, and commands.

Every Project Manager go to Functional Managers and ask to provide relevant functional staff. In case any functional staff member needs technical help, he goes to his Functional Manger for technical help. In this way, he builds up his team and start managing the project.

This is the perfect Organizational Structure for a Project Manager to dispense his duties in the light of 10 Knowledge Areas in letter and spirit. So, a certified Project Management Practitioner is always advised to choose Strong Matrix Organizations for professional practice, as it is the ideal place for them to serve.

4) Balance Matrix Organizational Structure:

In Balance Matrix Organizational Structure, there is no skilled and certified Project Manager manages a project. They entrusted the responsibility of project management to an experienced staff member of project domain. For instance, in the above snapshot as I have explained that when a project related to marketing domain comes, and it assigned to an experienced and skilled staff member working under the Marketing Functional Manager.

Now, this staff member would go to every Functional Manager and asked the required resources and build up his team. So, in these kinds of organizations, whenever a project comes, it is assigned to an experienced staff member working under the relevant Functional Manager. He is not expert of the 10 Knowledge areas of Project Management; however, he manages with his working experience.

5) Weak Matrix Organization:

In Weak Matrix Organizational Structure, there is no Project Manager. A request is generated to all the Functional Managers to send some of their technical staff members. Similarly, all those staff members are combined to form a team. In the same way, randomly a member is selected from that as a “Project Co-Ordinator.”

That person is not the expert the (10 Knowledge Areas) of Project Management; however, he is usually better in communication and management skills. Similarly, that person leads the project, and Co-ordinate with the top Functional management for its management.

6) Projectized Organizational Structure:

It is called “Projectized” because a Project Manager is all in all in this Organizational Structure. Furthermore, The Project Manager is usually the expert of 10 Knowledge Areas plus significant Product Oriented Knowledge. CEO directly communicates with a Project Manager. There is a problem for a Project Manager to survive in that kind of Organizations. For instance, once the project is completed, he is bound to leave the Organization if he has no further project to be assigned on.

6) Hybrid/Composite Organizational Structure:

Any Organizational structure which is designed to combine two or more than two different organizational structures is called Hybrid/Composite Organizational Structure.