Organizational Structure

(have to know these)

Structure

Authority Position Position Type
Strong Matrix 50% 95% Full Time PM, PrM
Projectized 85% 100% Full Time PM, PrM
Balanced matrix 15%- 60% Part time PM, PO
Weak Matrix 0-25% Part Time P Coord/P Leader
Functional 0% Part Time PC, PL

Organization charts define company relationships. They help answer the following questions:

  • Who am I? (What is my position in the organization?)

  • What do I do? (What is my title and job description?)

  • To whom am I accountable?

  • Who is accountable to me?

  • Who are other people of interest in the organization?

  • What do these people do? (What are their titles and job descriptions?)

  • What are the reporting relationships for these people?

If you work on projects, it is likely that you use a matrix organization.

A matrix organization generates a great deal of conflict because it begs the question, "Who is my boss?"

In a matrix organization, Project Manager does not have authority about doing Personnel Performance Management, this task is done by the Functional Managers.Project Manager reports to Functional Manager

Matrix structures are typically used for very important activities with a time-sensitive schedule. The essence of this type of structure is that it combines functional and product (project) orientation.

The advantage of a matrix organization is that it is very effective if buy-in occurs and a project manager has proper power and authority. The disadvantage of a matrix organization is the presence of interpersonal conflict.

Project Manager has maximum authority in a Projectized organization and least authority in a Functional organization.

Strong matrix organizations have characteristics of projectized organizations. Weak matrix organizations have characteristics of functional organizations.

 

review Section 2.3.3 of A Guide to the PMBOK  about project organizational structures.

1. Line and staff.
Line employees have direct responsibility and authority to accomplish enterprise objectives. Staff employees support line employees.

2. Centralization and decentralization.
Centralization and decentralization refers to degree of delegation of duties and authority granted to lower levels of an organization.

The determinant of a centralized or decentralized organization is the degree of control, not the physical location of personnel.

3.Span of control.

Span of control refers to the number of people or activities that can be effectively managed. When you direct just a few employees, you use a narrow span of control. When you direct many employees, you use a wide span of control.

4. The Parity Principle.
The parity principle states that authority and responsibility go hand in hand to effectively perform a task.

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