Project Organisation

Organizational structure is one of the main factors which influencing projects in an organization, depending on competition, industry, company history, companies can adopt different organizational structures at different times. They all have advantages or disadvantages depending on the current situation.

There are three main types of organizational structure:

1 - Functional Organizational Structure

First structure divides organization in to different departments according to their function. Each department is led by responsible person (manager) and employees divided to groups depending on their role. Functional structures that maximize departmental expertise help organizations to reach their business targets.

This type of organization structure works very well in factories.

2 - Projectized Organizational Structure

Projectized organizational structure designed to allow project manager to be at the top of the hierarchy and has all power and authority in any decision related to the project. All the rest of the team have to report to project manager. One of the advantage of this structure that decision making is faster and more flexible.

3 - Matrix Organizational Structure

Matrix organizational structure do not have hierarchical model. In this case resources and staff shared between the teams and projects. This type of structure is useful when skills have to be shared between the departments. Employees can learn new skills and lets resources to be maximized.