#Functional structure full

This project management arm often takes the form of a Project Management Office, or PMO. All of the project roles are still fulfilled within the functional departments, but the project manager is on the same level as the functional managers. On the other side, a strong matrix is still a functional organizational structure, but has a completely separate project management arm. A weak matrix retains the management of the project in the hands of the functional managers instead of the project team, like this: For example, if one of the department managers thinks that they have contributed more than their fair share, the project will stall quickly.įrom a theoretical point of view, there are two more adjustments that can be made. However, the project manager and team members are still paid by their respective functional departments, thus the final accountability for the project still lies at the functional level. Thus, a high priority can be placed on the project while maintaining the functional division services. They are assigned project team members from various departments, who are released from their departmental duties (at least partially).

#Functional structure full

In the typical matrix structure, a project manager is assigned from within one of the functional departments in either a part time or full time capacity. In fact, most organizations are along some level of the spectrum, utilizing a structure that gives project managers a bit more authority without losing focus on the provision of functional services. MatrixĪlthough the project-oriented and functional structures are at opposite ends of the spectrum, it is possible to be located somewhere in between (a hybrid). They are usually called “departments.”įor example, at an engineering firm the geotechnical department is available as an expert resource to all projects within the firm. In fact, most of these types of organizations have some form of functional divisions which are placeholders for resources that can be utilized by all projects. They are able to draw on resources with little required approval. In this structure project managers usually have a great deal of independence and authority. Project managers are usually full time in the role, and for small projects they might manage several projects at once. This includes construction contractors, architectural firms, and consultants.

These companies do most of their work on a project basis and are therefore structured around projects. On the other end of the scale is the project-oriented organization. This is because the functional organization is designed to focus on the provision of the divisional services rather than project deliverables. They must obtain approvals to utilize resources from other departments, which can be a complex undertaking. In this structure, project managers usually don’t have alot of authority to obtain resources or to manage schedules and budgets. They are often given secondary titles such as “Coordinator of Project X.” In the functional organizational structure, projects are initiated and executed by the divisional managers, who assume the project manager duties in addition to their regular, functional, roles. Most organizations are divided along functional lines, that is, each “division” is organized by work type, such as engineering, production, or sales. There are four types of organizational structures, each of which has their own unique set of influences on the management of the organization’s projects: Operational work maintains an existing sales channel, whereas projects are one-time, unique expenditures with a defined budget, beginning and end dates, and they accomplish a specific goal. A common way to differentiate between business organizational structures is between ongoing operational work versus capital projects.