Organizational Structures In Project Management

One aspect of project management that used to receive quite a bit of attention in the 1950s and 1960s was the project organizational structures. A myriad of new organizational structures have appeared on the scene in the last couple of decades but they still lack many of the desirable qualities in the traditional methods. Ultimately, project management directors seek organizational methods that facilitate teamwork, can maximize the use of limited resources, efficiency and quality in the way a project is completed and how goals and objectives are achieved. This article will examine the three main traditional organizational structures for project management. These three structures are functional organization, project organization and matrix organization.

Functional Organization This structure is by far the oldest of the organizational methods but remains one of the most successful. This method performs best when used for routine work functions and the upholding of quality and work standards. Functional Organization structures assign projects in two different ways. One way involves the project being assigned to a specific functional manager who then coordinates with the other departments for them to each contribute. Alternatively, projects can be shuffled around to different departments where each department manager ensures that their parts of the work have been completed.

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This method does not work very effectively when used in facilitating complex projects. One of the major criticisms of this organizational structure is the lack of built-in employee recognition, measurement and reward for project performance. Similarly, there is very little individual accountability for any project management tasks that need to be performed.

Project Organization Project Organization is a structure that is specifically designed for executing projects. It is specifically tailored to meet the demands of complex projects by isolating unique work and maintaining a strong focus on completing the project. Once the project is completed, this structure disbands. This structure is effective in maintaining dedicated resources throughout the life of the project.

The major criticism of this structure is that it is inefficient in transferring technology and 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 that evolved from the recognition of inherent flaws in the Functional Organization and Project Organization structures. Created in the 1970s, this structure combined the best components of these two structures. This model functions very well when there are multiple projects being coordinated at once. The functional managers oversee the staffing, training, job assignment and evaluation of the project's personnel. The functional specialists are assigned one or more projects and oversee that these individualized projects' achieve their objectives are completed through maximum resource efficiency.

Despite its recognition and avoidance of the flaws involved in other structure, Matrix Organization still does have some problems of its own. Individual employees report to at least two managers which can often lead to ambiguity and conflict. These problems can be avoided through good communication and solid leadership between managers.

This article simply provided an overview of several project management organizational structures. Functional Organization, Project Organization and Matrix Organization are the three most traditional project management structures that are still used today because of their effectiveness. However, do keep in mind that there are plenty of other methods available that may better suit your firm's situation. Nevertheless, the type of organizational structure that should be chosen by your firm depends on the type of project as well as the objectives and goals that it ultimately aims to achieve.

Organizational Structures In Project Management

Michael Russell

Your Independent guide to Project Management

Organizational Decision Making Is A Strategic Process

The organizational decision making process involves proper and efficient implementation of strategic plans and methods to achieve desired business objective. Let's examine some key areas that affect the overall process.

Often one difficulty facing an organization is that multiple divisions are involved in the overall decision making process. Making a decision can have different implications for each respective division. Gaining agreement from all stakeholders can be a challenge. When a companies overall strategy depends on the support of all business units, organization wide support is crucial.

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Key strategic evaluation and planning is crucial. This planning needs to address the overall strategic goals of the organization but also the end effects that impact workers outside of the decision chain. Organizational dysfunction and worker resistance can result if proper thought and attention is not directed towards front line efforts. Organizational change professional deal specifically with these issues. Unifying the company at all levels is very important. A failure to calculate and anticipate the implications of key decisions can derail a companies goals and objectives.

Organizational change management and planning processes seek to address the implications that a change in one input can have on the corresponding output. The evaluation and process evaluation that comprises part of the change management approach seeks to measure and anticipate the effect strategic decisions will have on company resources and labor. This permits the careful monitoring and benchmarking to adjust process as required to more closely align organizational objectives with desired outcomes.

With the businesses of today facing shortened product lifecycles, organizations are facing intense competitive pressures to build market share to stay ahead of rivals. Process changes, the introduction of new and improved disruptive technologies are forcing companies to adapt new business goals and objectives in shortened timeframes. This places corresponding stresses on all levels of the organization. As business units are forced to respond to top level management goals, flexibility has become a modern day requirement.

Organizational change management is a growing discipline to help managers become better positioned to understand how the decision making process can affect individuals at a cognitive level. Performance improvement is intimately linked to this. As companies transition into the future, change management is expected to become increasingly important.

Organizational Decision Making Is A Strategic Process

Andrew Winthorp is a freelance writer for http://www.organizational-change-management.com

Organizational Changes Learn more about how to prepare, plan and manage organizational change.

Organizational Management - Management Structure

In this installment of our guide to organizational management we look at management structure...

The process of planning, organizing, and controlling human and other resources in order to meet an organizations goals, is known as management.

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Typically, a company will be set up to include different types of managers, which can include managers with responsibility for a specific department or division of the entity, as well as regional managers who supervise activities in a particular geographic region. The types of management positions will vary in accordance with the size of the business.

Management structure (also known as organizational structure) is the method by which staff, departments, divisions and regions work and interact with one another. There are two main types of such structures, known as flat and hierarchal.

Whats known as a flat management structure promotes a decentralized decision-making process, which increases staff involvement and is achieved by very few or no management layers between front-line workers and the company's leadership.

By elevating the level of responsibility of baseline employees, and by eliminating layers of middle management, comments and feedback reach all personnel involved in decisions more quickly. Since the interaction between workers is more frequent, this management structure generally depends upon a much more personal relationship between workers and managers.

The hierarchal management structure has a set chain-of-command - that is each unit in the organization (except that at the very top) is subordinate to another unit or division. That means that each individual communicates directly with an immediate supervisor or subordinate and does not jump over layers of management to get to the top leader.

The benefit of a hierarchal structure is also its primary limitation in that it will reduce the level of communication that goes directly to the top. The hierarchal configuration, however, is the most prevalent for large corporations, governments, and even organized religions.

Flat management structures will typically only work well in smaller companies, or within smaller defined units of a large organization. Once an entity reaches a certain size, this type of structure will not work as well and could end up having a negative impact on productivity. An organizations complexity can be related to its size and how widely distributed it is geographically, and it is this complexity that governs which management structure is most beneficial to the company.

Organizational Management - Management Structure

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