The way your organization is structured influences how you manage and run projects. It can also influence how much authority and reach you have to do your job as a project manager. There are three common organizational structures, and project managers work in all of them: functional, project, and matrix. Let's take a look at the advantages and disadvantages of each so you know what you're up against when you join a new structure. In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. Generally, the functional manager has more authority than the project manager. Advantages The functional structure gives you the least power as a project manager, but offers plenty of other advantages:
Disadvantages Although this structure has plenty of advantages, also consider some downsides:
Dedicated teams are put together to work on projects in a project organizational structure. The project manager probably has line management responsibility for the project team members. Examples of this would include large construction builds, but also corporate initiatives that require a dedicated team. The project manager has ultimate authority, reporting to the project sponsor and the project board. The individuals on the team work directly for the project manager. Advantages The obvious advantage of a project structure is that you have more control over the team, but other advantages are in place, too:
Disadvantages The project structure is the easiest to work with, but still has some drawbacks:
The third option is a matrix structure. Resources are shared across both business-as-usual work and project work. It might mean having two managers or "dotted-line" responsibility to a project manager as well as to the team manager. The functional management line structure is normally in place first, and the project manager takes the dotted line. This structure splits power and authority between the functional or division team manager and the project manager. You’ll need to use your negotiating skills to their full power. Advantages Matrix structures are very common because they allow managers to make flexible choices with how people spend their time. You’ll likely work in a matrix environment at some point in your career. The advantages of this structure are:
Disadvantages As with all setups, this one has its pitfalls, too. Despite it being a common structure, not many modern workplaces have cracked the problems of overload. Giving individuals too much to do can be easy if you don’t have systems in place to manage and monitor the entirety of their workload. Other disadvantages are:
An organizational structure that works perfectly for all the business-as-usual work doesn’t always work for projects, and you have to manage within the environment in which you work. Getting some experience in each of these structures is a good idea so you can experience them firsthand. It will help you decide which environment suits you best and fits your skills and preferences. Then you can make an informed choice if you have the chance to decide your future job environment. Understanding the pros and cons of each project organizational structure gives you a chance to work out where best to spend your time and influence to get the most out of your team and help your project conclude successfully. |