Forms of Organization
By: Ray Myers, Jr., PMP
The PMBOK, PMI’s Project Management Book of Knowledge, discusses several forms of organizational structures. As a project manager, you should be able to recognize the common organizational structures and their characteristics because:
- The project manager’s level of authority and budget control will vary between structures
- The organizational structure often constrains the project manager’s ability to obtain project resources
- You will see one or more questions on forms of organization on the PMP certification examination.
Here are five structures and their characteristics:
Functional
The functional organization is grouped by areas of specialty within different functional areas, that is, accounting, marketing and manufacturing.
- This is the most common form of organization
- Each employee has one clear superior
- The project manager has little or no authority
- Project resources are limited
- The functional manager controls the project budget
- The project manager’s role is most likely part-time
Projectized
The projectized organization is grouped by projects. Team members may be co-located and most of the organizations resources are involved with project work.
- The project manager has the highest authority
- Project resources are readily available
- The project manager controls the project budget
- The project manager’s role is full-time
Matrix
Matrix organizations are a blend of the functional and project forms and share characteristics of each. There are three forms of MATRIX organizations.
Weak Matrix
- The project manager has limited authority
- Resources are limited
- The functional manager controls the project budget
- The project manager’s role is part-time
Balanced Matrix
- The project manager has low to moderate authority
- Resources are increasingly available
- The project manager may share budget authority with the functional manager
- The project manager’s role is full-time
Strong Matrix
- The project manager has moderate to high levels of authority
- Resources are generally available
- The project manager controls the budget
- The project manager’s role is full-time
About the Author: Ray Myers, Jr. is a PMP certified project manager with over 2o years experience planning and managing technology projects. Contact Ray at www.pmservicesnw.com
Article source: www.pmservicesnw.com
