By Helena Torres on July 27 2018 09:53:16
In a projectised organization authority is centralized. Because projects are removed from functional divisions the lines of communication are shortened. Both these factors enhance the ability to make swift decisions. Project teams develop a strong sense of identity which in turn creates a high level of commitment from team members. Due to their involvement in consecutive projects of a similar nature projectised organizations can develop and maintain a long-term body of experience and skills in specialized areas.
Think about your own experience. Is it difficult to get traction on your projects? Are there numerous layers of authority that you have to navigate to get approvals for basic tasks? Does your budget get cut because of competition for limited funding? Do your projects lose out in favor of day-to-day routine operations? And you thought it was something you were doing, or failing to do! Well it may have been, but it is more likely that you are feeling the effects of the organizational structure within which you work. Understanding your working environment better will help you to rise above organizational issues and smooth the way to successful project management.
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.
Because the matrix structure gives authority to both project managers and functional managers the outcome is to provide a more seamless division of labor and ultimately to build a stronger team culture. However, the potential for conflict between functional managers and project managers still exists because there is still resource conflict. Everyone who is on a project team has two bosses - their functional manager as well as their project manager.
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