Certain firms perform nothing but project work; large construction companies fit this model. The majority of their organization is devoted to specific projects. On the other end of the spectrum, utilities are operations-oriented. The majority of companies, however, conduct ongoing operations and projects. Choosing an organizational style that supports projects has never been easy. After…
Tag: Matrix
Functional Organizational Structure
One approach to organizing projects is to simply manage them within the existing functional organizational structure hierarchy of the organization. Once management decides to implement a project, the different segments of the project are delegated to the respective functional units with each unit responsible for completing its segment of the project (see figure below). Coordination…
How to Organize Projects Within A Matrix Organizational Structure
One of the biggest management innovations to emerge in the past 30 years has been the matrix organizational structure. Matrix management is a hybrid organizational structure in which a horizontal project management structure is “overlaid” on the normal functional hierarchy. The matrix organizational structure In a matrix system, there are usually two chains of command,…
Organizational Structure: Do You Belong?
Once management approves a project then the question becomes, how will the project be implemented. This article examines three different organizational structure mechanics used by firms to implement projects: functional organization, dedicated project teams, and matrix structure. Although not exhaustive, these organizational structures and their variant forms represent the major approaches for organizing projects. The advantages…