The Industrial Revolution brought about the emergence of large-scale business and its need for professional managers. Modern managers use many of the practices, principles and techniques developed from earlier concepts and experiences.
Early military and church organizations provided the leadership models on which the classical/functional model was the first to be developed. It began around the 1900 and continued into the 1920s. Max Weber known as the father of modern sociology analyzed bureaucracy as the most rational and logical structure for large organizations4. ...view middle of the document...
t.c. The need of budget management, workforce utilization, demand and supply scaling, compelled the need to develop the management system that was methodological and goal oriented 3.
Kerzner in his book says that functional or classical management which is also popularly known as the “bureaucratic” type of management “has often been defined as a process in which the manager does not necessarily perform things for himself, but accomplishes objectives through others in a group situation.” Project management on the other hand Kerzen says shares this basic definition but that in addition, “a project manager must help himself. There is nobody else to help him.”1
Therefore it could be said that by extension, a functional organization is structured in such a way that authority rests with the functional heads; the structure is sectioned by departmental groups while the Project team structure consists of an autonomous project team, existing independently of the rest of the organization. The project team is assembled for a specific project under the action of the product manager. The team is thus temporary and will be disbanded when its project is complete.
In a functional-driven management, the project coordination involves not only the departmental heads but top management as well, but in the case of a project-driven organization, the coordinating is solely the job of the project manager, thus releasing the top management from micromanaging operations so that they could focus on the overall company strategy.
The setup in a functional-driven management is such that staff members are grouped by their specialty, such as production, marketing, engineering and accounting at the top level. The projects that are carried out in this environment are limited in scope because such projects are confined to the boundaries of each department. Usually when new product development is undertaken in a functional organization, the design phase is strictly confined to the engineering department staff and if there are questions for the manufacturing department, such enquiries are carried out at the departmental head level, after which the answers are now passed down the organizational hierarchy to the departmental staff. This makes for a poor line of communication and in the long run affects the timeline of the project negatively. This is not the case in a project-driven organization because in the first instance, team members are assembled from various departments each a specialist in his or her field, thus different issues are attended to right there and then. ...