In the multidivisional structure, the subsidiaries benefit from the use of the brand and capital of the parent company. Implicit in the definition of the matrix organization is the recognition that the project is temporary whereas the functional departments are more permanent. There is no certain way to assure that there is a balance of power, and it is probably seldom really achieved. They have common themes of success, effectiveness, speed, change and agility within the organization. Because projects are removed from functional divisions the lines of communication are shortened. Team members report directly to the functional manager.
The matrix structure can provide a rapid response to changes, conflicts, and other project needs. New York: McGraw-Hill Book Company, 1975, pp. It was very rapidly realized that this alternative was not only very unwieldly but had many disadvantages with respect to efficient functional operations. Common organizational perspectives include function and product, function and region, or region and product. What do you do with several thousand people when the project is completed? He can always appeal to higher authority, however such actions must be kept to a minimum or top management may view the project manager as ineffective. The breakdown of responsibilities shown in table 1 and table 2, although useful in planning and decision making, is highly simplistic.
The current types of organizational structure of project management are: functional organizational structure, project-based organizational structure and matrix organizational structure. Once a project is planned, various tasks are allocated to different existing departments and functional teams. Gobeli examined the performance of different organizational structures with regard to the schedule, cost and technical performance of 540 development projects in 1987-88. Communication generally occurs within each functional department and is transmitted across departments through the department heads. The matrix approach is the most flexible of all three structures. This type of structure suits organizations intended to produce some product or service on a continuous basis. Test your knowledge about organizations Look at the job description as advertised by companies.
This may mean a considerable change in the way they determine their priorities. This tutorial video clearly explains the level of influence of the organizational structures like functional, weak matrix, balanced matrix, strong matrix and projectized on the project management. For example, a firm can switch between different providers and thus respond more quickly to different market needs. For example, the project manager could be responsible for handling project schedule or budget while the functional manager would be responsible for outlining and distributing responsibilities, overseeing the performance of the equipment, etc. Communication is less siloed and flows freely, possibly opening up more opportunities for innovation.
The project manager probably has line management responsibility for the project team members. She is a project coordinator or project expediter. In a functional organization, there is no one on the project team, and in a pure project organization, essentially everybody is on the project team. He then must review the key technical decisions and challenge them if necessary. Reprinted in Cleland and King, Systems, Organizations, Analysis, Management: A Book of Readings, pp.
Conflict, particularly the role conflict typical of the two-boss situation, can produce stress, anxiety, and reduced job satisfaction. However, the matrix is a complex organizational form and will not automatically work. The industries represented in the survey were pharmaceuticals, aero-space, computer and data processing products, telecommunications, medical instruments, glass products, petrochemical products, software development and household goods. This article simply provided an overview of several project management organizational structures. However, it has greatly added to the versatility and effectiveness of project management.
This represented the development of the pure project organization. Each of the three division is in charge of a different set of tasks: environmental responsibilities, nuclear-energy responsibilities, or research responsibilities. It is better for the Project managers to know the influence of organizational structure on project management. In certain organizations with a lean approach to management a purely project-based structure may work perfectly. Matrix projects are normally smaller with fewer people overall involved. Functional Organization This structure is by far the oldest of the organizational methods but remains one of the most successful.
However, in this discussion the matrix will only be considered from the viewpoint of its most highly developed application — that of project management. Disadvantages of a Matrix Structure A disadvantage of the matrix structure is the increased complexity in the chain of command when employees are assigned to both functional and project managers. Although all organizations are temporary in that they are constantly changing, the matrix is designed to be temporary and a particular organizational structure lasts only for the finite life of the project. There is a balance of power between the Project and Functional Managers. The matrix does not require that all business decisions be hammered out in group meetings.
Integration with Other Structures One aspect of team-based structures that will likely persist indefinitely is the integration of team cultures within an broader structure e. Your working style, career growth path, and reporting system are all dictated by it. The Two-Boss Matrix In a balanced matrix organization various people in the organization have two bosses figure 1. It can also create a gridlock in decision making if a manager on one end of the matrix disagrees with another manager. A strong project manager may place undue emphasis on time and cost constraints, while a functional manager may concentrate on technical excellence at the expense of schedules. Generally speaking, divisions work best for companies with wide variance in product offerings or regions of geographic operation. Dedicated Teams An opposite approach to project management is to create dedicated teams within the organization, which are units independent from the rest of organization.
The matrix shown in figure 2 represents a general organizational structure. Staff members are grouped by function, specialty, or expertise. In a functional organization, you will have a static role, while in other , you may have dynamic roles. At the same time, the necessity for designing the organization around the task to be performed was realized. Vertical flow provides for detailed disciplinary information to flow from project to project, and to various levels of management. A weak matrix is described as having only a part-time coordinator whereas a strong matrix has a project office containing such project functions as systems engineering, cost analysis, scheduling, and planning.