Project Organisation Structures and Culture
Submitted by:
Tamandani Mzumara
24010100278
Submitted to:
The Department of Managerial Studies
In Partial Fulfillment of the Requirement For
Project Management
CCC 1132113
Malawi Assemblies of God University
Lilongwe Campus
10th June, 2026
TABLE OF CONTENTS
1. Introduction.............................................................................................................3
2. Function-Based Structure........................................................................................4
2.1 Meaning of Function-Based Structure..............................................................4
2.2 Advantages of Function-Based Structure.........................................................4
2.3 Disadvantages of Function-Based Structure.....................................................5
2. Project-Based Structure...........................................................................................5
2.1 Meaning of Project-Based Structure.................................................................5
2.2 Advantages of Project-Based Structure............................................................6
2.3 Disadvantages of Project-Based Structure........................................................6
3. Matrix-Based Structure...........................................................................................7
3.1 Meaning of Matrix-Based Structure.................................................................7
3.2 Advantages of Matrix-Based Structure.............................................................7
3.3 Disadvantages of Matrix-Based Structure........................................................7
4. Choosing the Right Project Organisation Structure................................................8
4.1 Factors to Consider When Choosing a Structure..............................................8
4.2 Comparison of Functional, Project, and Matrix Structures..............................8
4.3 Selecting the Most Suitable Structure for a Project..........................................9
5. Organisational Culture............................................................................................9
5.1 Meaning of Organisational Culture..................................................................9
5.2 Importance of Organisational Culture............................................................10
5.3 Types of Organisational Culture.....................................................................10
6. External and Internal Change Triggers.................................................................11
6.1 External Change Triggers...............................................................................11
6.2 Internal Change Triggers................................................................................11
6.3 Impact of Change Triggers on Organisations.................................................12
7. Conclusion.............................................................................................................12
8. References.............................................................................................................13
Declaration
I, Tamandani Mzumara, confirm that the information provided is my work and has not
been copied from someone’s work. I have also cited and referenced all the information in the
assignment to show that it is not plagiarized. This information has not been submitted in any
assignment by anyone else at Malawi Assemblies of God University (MAGU) or elsewhere.
Introduction
In any organization projects are fundamental to achieving certain objectives and goals, as
well as helping improve business functions and process, new product and service development or
responding to business changes. Any project can be successfully managed with effective
organizational structures to be applied in managing projects and positive organizational culture
to influence employees work habits. Functional, Project-based and matrix structures are three
common organizational structures for projects to decide on the command, responsibilities and
resource allocation. Organizational cultures provide ways in influencing working teams,
motivational issues and decision making (Kerzner, 2022; PMI, 2021). Organizations also must
adopt to both internal and external environmental factors such as technology, market
competition, economics, leadership change and workforce trend to be successful and competitive
in future (Burnes, 2020). Project organizations structures selection, its implementation, fostering
a positive culture, and responding to various triggers are all key elements contributing to project
success and an organization as a whole (Meredith, Shafer & Mantel, 2020).
Function-Based Structure
Meaning of Function-Based Structure
Functional Structure is one of the common forms of organization, which organize
employees based on the skills. For example: departments such as finance, marketing, human
resource, production, and information technology. Each department would have a functional
manager that would take care of supervising the personnel as well as coordinative the function-
related activities (Kerzner, 2022). Project would work within the functional department,
employees are reporting to departmental manager directly. The functional structure encouraged
the skills specialization. The work is assigned according to his or her area of expertise so it is
helpful that the employees are capable to acquire in-depth functional knowledge and skills (PMI,
2021).
Advantages of Function-Based Structure
One of the main benefits of a function based structure is that it helps employees build in-
depth expertise within their function, enabling them to become better at what they do, thus
increasing efficiency and productivity (Meredith, Shafer, and Mantel, 2020). Clear lines of
authority and responsibility can be established with this structure as employees have only one
manager to report to, therefore minimizing conflict and confusion in decisions being made
(Robbins and Judge, 2022). Finally, the organization can use resources more efficiently since
specialists and equipment are shared among the function rather than duplicated across various
projects, reducing operational costs (Kerzner, 2022).
Disadvantages of Function-Based Structure
Although there are advantages of a function based structure, there are disadvantages as
well. Inter-department communication and coordination become difficult and slow due to
departmental goals superseding project goals (PMI, 2021). This could cause delays when a
project needs collaboration from different functions. Project managers do not have much
authority since many decisions stay with functional managers; therefore, delays in project
implementation and decreased accountability for project results may occur (Meredith, Shafer &
Mantel, 2020). Departments could also create walls that impede inter-departmental cooperation
and innovation (Robbins & Judge, 2022).
Project-Based Structure
Meaning of Project-Based Structure
A project-based structure is an organizational arrangement where resources, people, and
power are grouped together and arranged around distinct projects instead of functional divisions.
In this structure the project manager has broad authority for the project's planning, coordination,
and control for its entire life cycle. Employees are assigned directly to the project and they report
to the project manager during the whole life of the project (Kerzner, 2022). A project structure is
a form typically implemented for large, complex projects requiring continuous focus to achieve
defined objectives, within a specific time and budget (PMI, 2021).
Advantages of Project-Based Structure
The project based structure offers a major benefit where the project manager has
complete authority over project resources and decision making which enables quick decision
making and greater project control (Meredith, Shafer & Mantel, 2020). The team members will
communicate and co-operate more strongly as all members will solely be concentrating on the
project only. Team effort and problem solving will thus increase (Kerzner, 2022). The project's
goals will receive greater focus because all resources are dedicated to fulfilling them. As a result
project execution is generally better and this increases customer satisfaction and tasks get done
on time (PMI, 2021).
Disadvantages of Project-Based Structure
Although it can offer certain advantages, a project-based system can be expensive. In
some cases, it can create duplicate resources and expertise within a project, which may not be
cost-effective. It is also possible that workers can be uncertain of their roles once the project is
completed, and this may cause them to worry about the long term nature of their employment
(Meredith, Shafer & Mantel, 2020). With projects operating as separate entities, knowledge and
expertise is unlikely to be shared between project teams.
Matrix-Based Structure
Meaning of Matrix-Based Structure
A matrix structure is a hybrid type of organizational structure combining elements of the
functional and project structures. In the matrix structure, employees will report to functional
manager and the project manager. Functional managers will be responsible for the technical
expertise and the activities within functional department, project manager responsible for project
tasks and objectives accomplishment (PMI, 2021). The goal is to take advantages from flexibility
and optimum resources utilize, where organization can use the same specialized employees
across various projects, with functions experts still remain the technical specialist (Kerzner,
2022).
Advantages of Matrix-Based Structure
Another strength of the matrix organization is efficient use of resources. Functional
departments will not lose the specialist because he can be lent out to different project without
losing support from his department (Meredith, Shafer & Mantel, 2020). With cross-department
communication and cooperation, organization can be more responsive to the needs of diverse
projects (Robbins & Judge, 2022). Employees also can learn and be professionally developed by
working on multiple projects, gaining knowledge from different team members while keeping
their function department support (Kerzner, 2022).
Disadvantages of Matrix-Based Structure
The matrix structure does provide flexibility, but may lead to conflict and confusion due
to employees reporting to two managers whom are likely to have conflicting objectives and
expectations (PMI, 2021). The power struggle between the functional and project managers
resulting from the dual reporting is likely to slow down decision-making and increase its
complexity (Meredith, Shafer & Mantel, 2020). It may also create a higher level of stress for
employees who may be pulled in two different directions, with productivity and job satisfaction
potentially dropping as a result (Robbins & Judge, 2022).
Choosing the Right Project Organisation Structure
Factors to Consider When Choosing a Structure
Selection of the correct project organizational structure is vital, as it can have an effect on
performance and the accomplishment of organizational objectives. The criteria that should be
taken into consideration when selecting an appropriate structure are those of size and complexity
of project, availability of resources, the authority required by the project manager and inter-
departmental communication and coordination needs (Kerzner, 2022). Further criteria for
consideration by the organization are the strategic objectives it wishes to achieve, the
organizational culture and employee skills/experience (PMI, 2021).
Comparison of Functional, Project, and Matrix Structures
The functional structure is best suited to organizations that carry out routine processes
and need a high degree of technical specialization, as people are grouped by their skill and
knowledge (Robbins & Judge, 2022). On the other hand, a project structure is best suited for a
project that is large and complex, as it necessitates that an adequate number of people are
dedicated to a project and that there is a high level of authority for a project manager, to allow
for timely completion of the project goals (Meredith, Shafer & Mantel, 2020). The matrix
structure combines both the benefits of a functional and a project structure, allowing for the
sharing of people and the focus on a particular project and can be appropriate for organizations
managing multiple projects (Kerzner, 2022).
Selecting the Most Suitable Structure for a Project
Choosing the right structure is a decision that depends on project requirements and
situations. A functional structure may be suitable for smaller projects with constrained resources
as it demands fewer dedicated resources and less bureaucracy (PMI, 2021). Larger projects with
severe constraints and complex objectives would be more suitable for a project based structure as
it offers more control and responsibility (Meredith, Shafer & Mantel, 2020) while large
organizations having multiple projects at a given point in time may opt for matrix structure to
balance resource allocation and project performance (Kerzner, 2022). Thus, organization should
make judicious decisions considering project requirements, resource availability and
organizational goals before choosing the right structure.
Organisational Culture
Meaning of Organisational Culture
Organizational culture involves the shared values, attitudes, norms, beliefs, and behaviors
that shape employee interaction and work processes within the organization. The organizational
culture molds decision making, employee communication, and employee responses to problems
and chances, growing over time with leadership styles, organizational history, policies, and
employee experiences that form a distinctive identity of the organization (Robbins & Judge,
2022). The development of a strong organizational culture guides employees and integrates their
actions with the objectives of the organization (Schein & Schein, 2021).
Importance of Organisational Culture
Organizational culture greatly impacts on the success of projects and organization.
Positive organizational culture enables the workers to collaborate, be committed to their work,
and contribute to good results and productivity (PMI, 2021). It will let workers know what the
organization expects from them, and make employees have same behavior and thinking in
different departments (Robbins & Judge, 2022). And culture may improve the employees'
motivation and job satisfaction, lower conflicts in the workplace, and have the successful
progress in organizational change and projects (Schein & Schein, 2021).
Types of Organisational Culture
A number of types of organisational culture exist and are influential in differing ways to
behaviour among employee's: a clan culture is an environment centred on teamwork, employee's
feel a commitment and involvement in a family feel (Cameron & Quinn, 2011), adhocracy is
based on innovation and risk taking suitable to markets that have competitive or turbulent
characteristics (Cameron & Quinn, 2011), the market culture relies on productivity and getting
results whereas hierarchy cultures are based on formality, procedure and control. The culture that
works best depends upon the target the organisation has
External and Internal Change Triggers
External Change Triggers
External triggers are factors outside of an organization that necessitate change in business
operations, strategy, and structure. A significant external trigger is technological innovation
which forces organizations to incorporate new technologies and procedures in order to maintain
competition and efficiency (Burnes, 2020). External triggers can also come in the form of
economic conditions, like inflation, recession, and changes in exchange rates. Economic change
has the ability to alter organizational decisions with regard to investing, production, and levels of
employment (Robbins & Judge, 2022). Governmental policies and legislation, market
competition, and changing customer demands are other significant external triggers that
influence organizational change to products, services, and operations (Kotter, 2012).
Internal Change Triggers
Internal sources of change emerge from within the organization itself, and often occur as
a response to the desire to enhance performance or respond to problems within the organization.
Changes in leadership could lead to new directions, objectives, and style of management for the
organization (Burnes, 2020). Changes in employees due to attrition or skills gaps and to address
work force development issues may lead organizations to restructure jobs, implement new
training, and change human resource practices (Robbins & Judge, 2022). In addition,
organization growth and expansion, reorganization, new systems and procedures could require
change to make these practices more efficient, productive, and coordinated with other parts of
the organization (Kotter, 2012).
Impact of Change Triggers on Organisations
External and internal change triggers can profoundly impact the performance of an
organisation and a project's deliverables. With good change management, efficiency, innovation,
competition and customer satisfaction can increase by allowing organizations to take advantage
of emerging opportunities and challenges (PMI, 2021). Conversely, poorly managed change can
also bring instability, employee resistance and transient operational disturbances (Burnes, 2020),
which indicates the need for ongoing monitoring of internal and external environments and
strategies that allow for adaptive success in the long term (Kotter, 2012).
Conclusion
In conclusion, project organisation structures and organisation culture have a profound
influence on project execution within an organization. The functional organisation provides
specialized competence but lacks integration, the project organization gives focus and control but
is cost intensive and the matrix organisation is both flexible and has a cost effective use of
resources but can cause complexity due to dual reporting (Kerzner, 2022; PMI, 2021). It must be
identified that there is no best project organization structure; it will be a matter of matching the
project ( size, nature, need for resources etc. ) and organizational context (goals of the project,
availability of resources etc) to get an efficient execution of the project (Meredith, Shafer &
Mantel, 2020). Organisation culture can influence employees on the way that they perform work
and relate with colleagues and how they are motivated, productivity and project results will be
impacted as a consequence (Robbins & Judge, 2022).
References
Burnes, B. 2020. Managing Change (8th ed.). Pearson.
Cameron, K. S., & Quinn, R. E. 2011. Diagnosing and Changing Organizational Culture (3rd
ed.). Jossey-Bass.
Kerzner, H. 2022. Project Management: A Systems Approach to Planning, Scheduling, and
Controlling (13th ed.). Wiley.
Kotter, J. P. 2012. Leading Change. Harvard Business Review Press.
Meredith, J. R., Shafer, S. M., & Mantel, S. J. (2020). Project Management: A Managerial
Approach (10th ed.). Wiley.
Project Management Institute (PMI). 2021. A Guide to the Project Management Body of
Knowledge (PMBOK® Guide) (7th ed.). PMI.
Robbins, S. P., & Judge, T. A. 2022. Organizational Behaviour (19th ed.). Pearson.
Schein, E. H., & Schein, P. A. 2021. Organizational Culture and Leadership (6th ed.). Wiley.