By Coretta Hunter on July 22 2018 15:15:42
Projectised Organizational Structure. In a projectised organization the project manager has full authority over the project. This includes the authority to set priorities, apply resources, and to direct the work of the project team. All members of the team report directly to the project manager and everybody is assigned to a project. After completion of the project, resources will be re-assigned to another project. This type of structure is common in firms that work on size-able, long-term projects, such as in the construction industry.
Functional Organizational Structure. These firms are organized into functional divisions based on primary functions such as engineering, human resources, finance, IT, planning and policy. Each different functional division operates independently and isolated groups of workers in a division report to a functional manager. The functional manager generally both allocates and monitors the work and carries out tasks such as performance evaluation and setting payment levels. In this model project managers have very limited authority. Functional organizations are set up for ongoing operations rather than projects and so this organizational structure is often found in firms whose primary purpose is to produce standardized goods and services.
It is clear that projectised organizations make it easier to run projects because the entire structure is set up for that purpose. But if you are managing a project within other organizational structures, then recognizing and understanding the impacts will raise your awareness of the potential project management pitfalls, so that you can be proactive about resolving them. Communication, conflict resolution and team building will be key to your success.
Project management eats into the cash that I need to grow my business. A common misconception is that it is hugely expensive to implement PM process. The reality is that there are many free or low-cost sources of advice, techniques, tools, templates and project management services readily available and accessible through the Internet. If done correctly, any small business can implement PM processes, techniques and tools with very little cost. The likelihood is that small business owners are already using software and other tools that can be used for project management. For example, certain email software, spreadsheets, and other common software applications offer good templates for project management, especially if used in collaboration with some of the low cost project management services available for small businesses.
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