functional organization vs projectized organization vs matrix organization | Difference between functional organization, projectized organization, matrix organization

This page compares functional organization vs projectized organization vs matrix organization and mentions difference between functional organization, projectized organization and matrix organization types. The links to other difference between terms are also provided.

Functional Organization

functional organization

The Functional Organization structure involves following:
• The hierarchy where each employee has one clear superior.
• Staff members are grouped by their speciality such as production, marketing, engineering, accounting etc.
• Functional organization undertake projects but the scope of project is usually limited to boundaries of the function.
• The communication during inter-department project is through the department heads.
• Functional manager controls the project budget.

Projectized Organization

projectized organization

The Projectized Organization structure involves following:
• Project team members are often collocated and often report to a project manager or provide support service to various groups.
• Project managers have a great deal of independence and authority.
• Project manager has complete authority, controls the project budget and has a full time administrative staff.

Matrix Organization

There are four basic Matrix Organization types viz. weak matrix, balanced matrix, strong matrix and composite matrix.

Weak Matrix Organization:
• Maintains many characteristics of functional organization.
• Project manager's role is of coordinator or expeditor than that of a manager.

Balanced Matrix Organization:
• Recognizes the need of project manager.
• Project manager does not have full authority over project and project funding.

Strong Matrix Organization:
• Maintains many characteristics of projectized organization.
• Project manager's have considerable authority and full time project administrative staff.This type is shown in the figure.

strong matrix organization

Composite Matrix Organization:
• Functional organization may create a special project team to handle a critical project.

• Team may include full time staff from different functional departments.
• May develop its own set of operating procedures
• Maintains many characteristics of projectized organization.

Following table mentions how organizational structure influences the role, responsibilities and authority of project manager in an organization.

Project characteristics Organizational structure
Functional Matrix Projectized
Weak Balanced Strong
Project manager's authority Little or none Limited Low or moderate Moderate to High High to almost total
resource availability little or none limited low or moderate moderate to high high to almost total
who controls the project budget functional manager functional manager mixed project manager project manager
Project manager's role part time part time full time full time full time
Project manager's administrative staff part time part time part time full time full time

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