Project Management Organizational Structures write up what you learned from this chapter. 3 Paragraphs MinimuM

Critical Success Factors

In a matrix organization, it is important to delineate the project management responsibilities and the functional management responsibilities.

When implementing a matrix organizational structure, operating guidelines should be established to assure proper balance of power between project managers and functional managers.

Project teams should be kept as small as feasible throughout the project.

Summary

The three most common structures used to organize people to work on projects are functional, autonomous project, and matrix organizational structures.

The functional organizational structure is typically used in businesses that primarily sell and produce standard products. The advantages of a functional organizational structure are no duplication of activities and functional excellence. Disadvantages include insularity, slow response time, and lack of customer focus.

The autonomous project organizational structure is used by companies that are working on multiple projects at any one time and do not produce standardized products. The advantages of the autonomous project organizational structure are control over resources and responsiveness to customers. Cost inefficiency and low level of knowledge transfer among projects are its disadvantages.

Summary (continued)

The matrix organization is a hybrid of both the functional and the autonomous project organizational structures. The advantages of a matrix organizational structure include efficient utilization of resources, functional expertise available to all projects, increased learning and knowledge transfer, improved communication, and customer focus. Its disadvantages are the dual reporting relationships and the need for a balance of power.

In the matrix structure, the project manager is the intermediary between the company and the customer.

The project management office in the matrix organizational structure oversees and coordinates multiple projects.