How Organizational Structure Influences Projects
You have been introduced to three types of organizational structures and how authority and responsibilities generally flow through each. The organizational structure has a significant impact on the project.
It is important to remember that the organizational structure often changes during the life of the project. The key issue is that the project manager needs sufficient authority to successfully execute the project. You cannot make the project commitments if you do not have the authority to make it happen. In all of your organizational planning ensure that you have all the authority you need, whether it comes from the organizational structure in the projectized organization or from the functional managers in the functional organization.
The following table illustrates how the levels of authority and responsibility differ between organizational structures. Note that in this table, moving from left to right, the authority of the project manager increases, as does the percentage of time dedicated to project management functions. In a weak matrix organization, the functional managers have more responsibility. In a strong matrix organization, the project manager has more responsibility. The functional managers are the providers of resources for the project and the project manager is the customer of the resource.
Project Characteristics | Functional Organization | Matrix Organization | Projectized Organization | ||
---|---|---|---|---|---|
Weak | Balanced | Strong | |||
Project Manager's authority | Little or none | Limited | Low to moderate | Moderate to high | High to almost total |
Percent of performing organization's personnel assigned full-time to project work | Virtually none | 0-25% | 15-60% | 50-95% | 85-100% |
Project Manager's role | Part-time | Part-time | Full-time | Full-time | Full-time |
Common titles for project manager's role | Project coordinator Project leader |
Project coordinator Project leader |
Project manager Project officer |
Project manager Program manager |
Project manager Program manager |
Project management administrative staff | Part-time | Part-time | Part-time | Full-time | Full-time |