Project Management Organizational Structures

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Project Management Organizational Structures

Organization Structure

Design of organization structure is based on the way various activities are grouped together to create departments and units and prescribing their relationships in the organization (Brooks, 2006). Thus there are seven types of organization structure - line, line & staff, functional, divisional, project, matrix and free-form. Each of these emphasizes different arrangement of organizational activities.

Difference between three Primary Project Management Organizational structures

Functional Structure is based on departments, while matrix structure is based on two-dimensional structure and pure project has a project basis. Matrix structure is designed on organic pattern, while functional structure has a basic pattern. Functional structure is a traditional organizational structure, while project & matrix are classified as modern organizational structures (Luthans, 1998).

The functional organizational structure is based on the line authority, staff authority and the notion of functional authority. It is a modification of the line and staff structure. Their basic authority remains as in a line and staff structure (Brooks, 2006). However, line managers and staff managers at various levels begin to have jurisdiction beyond their own spheres of authority. A line manager, say, marketing manager, exercises functional authority over limited aspects of manufacturing activity, in such matters as enforcing observance of delivery schedules for customers' orders, manner of packaging of products, supply of spare parts etc. A staff manager say a personnel manager, is vested with functional authority over other line departmental activities on such matters as enforcing compliance with personnel policies and procedures.

A functional structure goes beyond normal or pure line authority and staff authority embedded in a line and staff structure. Some line managers in a functional structure exercise line authority over their own subordinates and functional ...