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Types of Project Organization Structures

The document discusses three types of project organizational structures: functional, project, and mixed (hybrid). The functional structure groups people by expertise, but the project manager has limited authority over resources. The project structure gives complete authority to the project manager but can be inefficient. The mixed structure balances functional expertise and project focus by having both functional and project managers, improving resource use but requiring careful reporting structures.

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Shan amir
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7 views7 pages

Types of Project Organization Structures

The document discusses three types of project organizational structures: functional, project, and mixed (hybrid). The functional structure groups people by expertise, but the project manager has limited authority over resources. The project structure gives complete authority to the project manager but can be inefficient. The mixed structure balances functional expertise and project focus by having both functional and project managers, improving resource use but requiring careful reporting structures.

Uploaded by

Shan amir
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Types of Project

Organization
Functional Type Organization
• Functional groups consist of people with
similar expertise or skill.
• Each functional group focuses on
performing its own activities.
• In projects, the PM does not have
complete authority over the team.
• The PM must coordinate with other
functional managers
• May work for internal company projects.
Project-Type Organization
• Each project is like a mini-company.
• The PM has complete authority over
resources.
• Because resources are not shared, may
be less efficient due to duplicate or idle
resources.
• Reduced opportunity to share knowledge.
• Requires detailed and accurate planning
and control.
Mix-Type Organization
• A hybrid of functional and project orgs.
• Project manager responsible for project
results.
• Functional manager responsible for
providing the required resources.
• Shared resources leads to improved
resource utilization.
• Reporting structure is critical.
• Allows for fast response.
Functional Structure
Advantages Disadvantages
• No duplication of • Lack of customer focus
activities • Functional activities
• Max: flexibility in the • No one fully
use of staff. Functional excellence responsible
• Individuals can utilized • Slow response time
in different projects. • Lack of coordinated
• Technological efforts (departments)
continuity • Weak motivation
• Normal path of
advancement
Project Structure
Advantages Disadvantages
• Control over resources • Cost inefficiency
• Responsiveness to • Low level of knowledge
customers transfer among projects
• Short communication • Technical K&S hired
line when available, not
• Permanent cadre of when needed
experts (successive projects) • Inconsistency in policies,
• Committed project team procedures to carry out
• Simple and flexible • Team members
structure attachment (proj: limited life)
• projectitis
Mix Structure
Advantages Disadvantages
• Efficient utilization of • Dual reporting
resources relationships
• Functional expertise • Need for balance of
available to all projects power
• Increased learning,
communication, and
knowledge transfer
• Customer focus

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