Project Management

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Unit5-OrganizationalModels.pptx

Organizational Models

A FUNCTIONAL ORGANIZATIONAL STRUCTURE

A functional organization structure is a hierarchical organization structure wherein people are grouped as per their area of specialization. --- the project manager and all resources work in the same company division.

These people are supervised by a functional manager with expertise in the same field.

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A FUNCTIONAL ORGANIZATIONAL STRUCTURE

NB. The functional structure gives you the least power as a project manager

Advantages:

Works well for small teams and small projects

Easy access to experts because they are in the same functional area

Quick to get everyone together to resolve problems

Limit communication tools required due to a small and simple team

Motivate team members due to new career opportunities

Disadvantages

You may not have access to people outside your functional division

Conflicts may arise due to team members being more loyal to their department than to their work on the project

Large projects may require a functional project manager for each function –( lack of harmony )

Functional work can be isolating.( cannot network widely in the company)

A FUNCTIONAL ORGANIZATIONAL STRUCTURE

A PROJECT ORGANIZATION STRUCTURE

A PROJECT ORGANIZATION STRUCTURE

NB. You have more control over the team

Advantages

Team have a strong sense of identity

The entire team is focused on the team goals ( no conflict of loyalty)

Easier to schedule work ( resources and team members are dedicated to the project)

Able to improve project management skills and technical leadership skills

A PROJECT ORGANIZATION STRUCTURE

Disadvantages

May be expensive ( one team dedicated to one project)

Managing the transition of the team after project termination

May not be appealing to team members who will have to move from their functional job to a project.

Termination of a project may mean a loss of job

May limit the number of projects the company can work on at any given time (when same skills are required)

A MATRIX ORGANIZATION STRUCTURE

This company structure in which the reporting relationships are set up as a grid or matrix rather than the traditional hierarchy. – employees have dual reporting relationships- generally to the functional manager and product manager.- facilitates the horizontal flow of skills and information. ( used to manage large projects)

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A MATRIX ORGANIZATION STRUCTURE

NB. Resources are shared across both business as usual work and project work.

Advantages

Resources are used efficiently ( can move around projects as needed)

Multitasking capabilities

Teams can be very responsive

Moving between projects is easy (same project management life cycle and methodology)

A MATRIX ORGANIZATION STRUCTURE

Disadvantages

Conflict between projects

Sabotage may arise ( holding the best resources from one project to the next)

Conflict may arise between business as usual tasks and project work

People may have conflicting decisions about the development path they take for future careers ( project management or a more functional role)