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
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
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.
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 |
Useful PMP Related Links
Project management professional,PMP, READ MORE.
How to pass PMP Exam on first attempt, READ MORE.
PMP Training Institutes, READ MORE.
Agile scrum methodology and scrum basics,READ MORE.
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