Organizational Structure influencing on Project Management
Organizational Structure is a key element that can have a straight / direct impact towards the success of projects. The structure differs from organization to organization and based on the structure, the project management methodology also differs. PMI has identified the organizational structure as an enterprise environment factor that can affect on how the projects need to be conducted. Therefore, according to different organizations, few structures have been identified and categorized under three structural level. They are;
- Matrix (Weak, Balanced and Strong)
These organizations function under different functional level leads such as marketing, finance, human resource, operations, etc… Each department will work on their project tasks independently from other units / departments.
These organizational structures reflect a combination of both functional and projectized environments. It has been classified under three different level which are weak, balanced and strong matrix structures based on the authority, power and influence level between the functional and project managers.
Weak Matrix Organization
This structure follows most of the characteristics of a functional structure. Also the level of a project manager is at a coordinator / expediter level which is very low and cannot make decisions.
Balanced Matrix Organization
This structure recognizes the need of a project manager, yet it doesn’t provide the full authority to the respective project manager.
Strong Matrix Organization
This structure has most of the projectized environmental features and have full-time project managers with more authority level.
This acts as the complete opposite of the functional structure where the organization functions under project managers who have a great deal of authority and most of the resources are involved in projects’ activities.
Refer below comparison among the identified structures which are compared under three factors namely;
- The role of the Project Manager
- The authority level of the Project Manager
- Resources Availability