Primary Project Management Organizational Structures
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Prepare a response in which you compare and contrast the three primary project management organizational structures: functional, matrix, and pure project. In your answer, discuss the situation in which each structure would be the best method to manage a project team. Provide rationale for decisions.
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Solution Summary
This solution discusses organizational structures, including functional structure, matrix structure, and project structure and discusses how an organization may choose the right structure for itself. This solution is 1000 words with online references included.
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Organizational structure in a company helps to formally determine the hierarchy that must exist between the departments to have a successfully functioning business. There are many different kinds of organizational structures, and there is no single "right" structure, it varies by organizational need.
Functional Structure:
The functional structure of organization places employees into groups based upon their functions in specific jobs within the organization. Departments are typically broken down according to category, and there is a hierarchy within these departments. An example of a functional structure organizational chart would be as follows:
- Owner/CEO
- Chief Financial Officer (Finance)
- Accounting Manager
--> Accounting Assistant
- Chief Marketing Officer (Sales/Marketing)
- Marketing Manager
--> Marketing Associate
- Sales Manager
--> Account Executives
- Human Resources Director (HR function)
- Human Resources Manager
--> Human Resources Associate
The primary focus in this type of organizational structure is the concept of subordination and a corporate ladder of management levels within specific departments. Specialization is central to the organizational structure and the employees are grouped according to their skill sets and specialties. The purpose of this structure is to allocate the available employees according to their roles and forming a functional department. When it is necessary to form a project management team, it is done by performing each project inside a single departmental unit. When information or help is needed from another department, the request is routed through the head of that department and then filtered downward. A functional organizational structure is frequently used when a solitary product line is created by the organization.
There are many benefits to using the functional organizational model. One ...
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