Managing projects requires an understanding of the organizational structure unde

Question

Managing projects requires an understanding of the organizational structure under which the project will be conducted. There are many different types of organizational structures. Three of the most common major types of organizational structure are functional, matrix, and project-oriented. Among the three major structures, there are similarities and differences in where authority resides, who controls the budget, how resources are allocated, and what roles and responsibilities the project manager and project team members assume. Each of these factors has the potential to influence project outcomes. Also, the skills a project manager needs are dependent on the organizational structure under which the project will be conducted. This is especially true regarding technical vs. interpersonal skills.

Briefly describe each of the three common types of organizational structures. What are the similarities and differences among them?

What skills does a project manager need that are the same regardless of the organizational structure? Support your response with at least one example.

What skills does a project manager need that differ depending on the structure of the organization? Support your response with at least one example.

In what ways does organizational culture influence how a project manager applies these skills? Support your response with at least one example.

Explanation / Answer

Functional Organizational Structure

In this structure, organizations are created as per the various functions in the company. These could be Accounts, Finance, Marketing, Product, Operations, etc. This is a rather traditional way of creating a structure and in this the project manager plays a very minimal role in project execution. In fact, it is more of a misnomer since in this role, a project manager only acts as a facilitator and has autonomy in taking critical decisions.

Project Oriented Structure

In this, the structure is made around the project and not as per the various functions. The other major difference between and functional and project oriented structure is that in the latter, the project manager has much more autonomy and power in taking decisions. The team members in such a structure would either be co-located in the same office or be at least connected virtually.

Matrix Structure

This is more of a blend of the above two structures. If the project manager has weak powers, then the structure is known as Weak Matrix and if the project manager has more powers, then it is known as Strong Matrix.

The skill sets needed by the project managers would vary as per the organizational structure. A power hungry, authoritarian leader will not be very comfortable in a functional organizational structure as compared to a project oriented structure.

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