Property Management Organization
Project Management Organizational Structures Paper
MGT437/Univesity of Phoenix
April 25, 2011
Project Management Organizational Structures Paper An organization must align its activities with the company’s objectives. This entails employees coordinating functions through strong clear communication channels. The way in which work is divided dictates the organizational culture of the company. This paper will define three types of organizational structures; functional, pure project and matrix, and contrast advantages and disadvantages that exist between them.
It is essential that upper level management decides which organization structure will be used at the onset of the project. Determining the hierarchy within an organization is the purpose of the organizational structure. The structure will vary depending on size and scope of company or organization. There are three main types of organizational structure: functional, matrix and pure project management.
Functional Project Management
In the functional project organization, the company arranges the departments by the various functions within the organization such as engineering, accounting, marketing, and finance. These departments are staffed skilled workers who perform tasks relevant to completing goals within that area of development. The functional groups or departments use technologies, people and tasks necessary to do the work. This type of environment has the advantage of being able to easily coordinate functions in an organizational structure because the employees are arranged by specific professions. For instance, accounting and finance professionals support the budget deliverable of the project, whereas manufacturing and production managers would affect the timeline elements of the project.
An example of a company that would use this type of structure is a division of an ISP (internet service provider). Below is an organizational chart that would support this division.
MGT437/Univesity of Phoenix
April 25, 2011
Project Management Organizational Structures Paper An organization must align its activities with the company’s objectives. This entails employees coordinating functions through strong clear communication channels. The way in which work is divided dictates the organizational culture of the company. This paper will define three types of organizational structures; functional, pure project and matrix, and contrast advantages and disadvantages that exist between them.
It is essential that upper level management decides which organization structure will be used at the onset of the project. Determining the hierarchy within an organization is the purpose of the organizational structure. The structure will vary depending on size and scope of company or organization. There are three main types of organizational structure: functional, matrix and pure project management.
Functional Project Management
In the functional project organization, the company arranges the departments by the various functions within the organization such as engineering, accounting, marketing, and finance. These departments are staffed skilled workers who perform tasks relevant to completing goals within that area of development. The functional groups or departments use technologies, people and tasks necessary to do the work. This type of environment has the advantage of being able to easily coordinate functions in an organizational structure because the employees are arranged by specific professions. For instance, accounting and finance professionals support the budget deliverable of the project, whereas manufacturing and production managers would affect the timeline elements of the project.
An example of a company that would use this type of structure is a division of an ISP (internet service provider). Below is an organizational chart that would support this division.
References: Figure 1- Functional organizational chart for ISP Kerzner, H. (2006). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. (9th ed.). Hoboken, NJ: John Wiley & Sons. pp 99,101 Mantell, L. (1972). The Systems approach and good management. Reprinted by the Board of Trustees at Indiana University.