Project Management with Organisational Influences

In Organisation, Project Management is very well influenced by different types of Organisation Structures. The effect can be good or bad means positive or it can be negative.

Main three basic different types of Organisation structures:

1)      Functional
2)      Matrix

a.       Weak

b.      Balanced

c.       Strong

3)     Projectized

Functional: Organisation where Resources reports to their line manager or their manager and where Project Manager has little authority to the Project.

Matrix: Organisation where Project Manager has little or more authority to the Project. He share the authority with line manager or other senior Manager for scope, time, cost or any other Project elements.

Projectized: Organisation where Project Manager has full authority to the Project of Scope, time, cost or any other Project elements.

Composite: Organisation where combination of these structures are used.

1)        Functional: In this, Project Manager has little authority for the Project. All the resources reports to the Line Manager. Here, Project Manager can be just Project Expediter. Project Manager is not responsible for any performance review or other elements of the Project.

·         Performance reviews of resources and promotions are Line Manager’s responsibilities.

·         Project Manager has little or no authority. PM is just like for part time. So no career path for PM.

·         Employees has direct reporting to the Manager.

·         Employees can be gain more expertise.

2)      Matrix: In 1970 it is developed to take benefits of both Functional and Projectized. PMI defined three types of Matrixed Organisations are there: Weak, Balanced and Strong.

Ø  Weak Matrix: Here, Project resources are directly report to the Functional Manager. It’s almost same like Functional Organisation. PM’s role is like a Project Expediter or Coordinator.

Ø  Balanced Matrix: Here, Project Manager has some authority. PM share the authority with Functional Manager for Project. PM not get full authority for Project budget or other elements.

Ø  Strong: Here, same features like Projectized structure. Project Manager has full authority of Project for scope, time, cost and other elements.

·       Project objectives can be more in depth.

·       Multiple performance reviews can be there for resources.

·       Multiple bosses to manage.

3)      Projectized: Project Manager has full authority of the Project for scope, time, resources, cost or any other elements. Organisation which are mostly depends upon the Projects for earning are fall in this type. Each resource is totally focused on Project, resources are dedicated to the Project.

·         Project can be efficiently managed.

·         Project resources are effectively communicated with each other.

·         Project Manager Job can be gone once a Project is closed.

Composite: Any of the three methods are used together Organisation to manage a Project. Project Manager interacts at project’s three levels Strategic, Middle and Operational level management. After this interaction resource availability, PM’s role, authority, Project’s scope etc. decided.

What is your Organisation Structure?