Organizational Structures Essay

765 words - 4 pages

Project Management Organizational Structures
MGT437
February 6, 2012
Susan Braun

Project Management Organizational Structures
When organizations receive a project, the most efficient way to complete it successfully is to incorporate it into an organizational structure. There are three structures available that companies can choose from; functional, pure, and matrix. This paper compares all three, showing the advantages and disadvantages of each.
Functionally organized businesses use the project as part of the organization, making it part of a functional division within the firm. The project goes to the division that has the necessary qualifications and will benefit most ...view middle of the document...

The project has its own staff and administration that report to the parent company allowing the project almost total freedom of final accountability.
Advantages of using the pure structure is that the project manager holds all the authority and is dedicated to seeing the project through to completion. The project manager has to communicate with only the senior management, making the communication process faster. Decision-making also happens faster because the project manager has complete authority. Employees working in the pure structure are motivated and have a high level of commitment to the project. This structure is simple and flexible, making implementation easy.
Disadvantages of using the pure project structure is that staff has to be duplicated if there is more than one project. The project manager will hire qualified personnel so that he or she is available when needed. Pure project organizations are conflicting about the way that policies and procedures are carried out making it easy for employees to cut corners. Job security is another issue. Employees want to know what happens to their job when the project is complete. This makes it difficult to find a full and dedicated staff.
The matrix organizational structure undertakes a variety of specialized forms. It takes from the advantages of both functional and pure structures, creating a collaborative division for the project. The project is usually assigned to people who do their own...

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