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Project Organizational Structure
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What is organization?
As a verb, organizing is to unite different people to
finish a task that cant be done by single person.
As a noun, organization includes people and related
resources, as well as their relations with each other.
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Concept of organization
Organization: a consciously formed structure of
principalship and posts
[U.S.]Harold Koontz
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Why do we need organization
4
objective
restriction commissionorganization
staff
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Identify objective
Identify activities
Build institutions
Recruit staff
Achieve
goal
implementation
responsibility
delegation
Divide levels
Set working
system
objective
task
institution
staff
Check and feedback
organization
No
Yes
Design of project organization
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Objective oriented
Stability and adaptability
Unified direction
Job division
Proper management
Centralization and
decentralization of power
Power-responsibility balance
Effective
equilibrium
Overall
Principles for
project
organization
Principles for project organization design
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Types of Organizational Structure
Functional type
Project type
Matrix type
Weak matrix
Balanced matrix
Strong Matrix
Complex matrix
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Functional type
President
Functional DepartmentManager
Staff
Staff
FunctionalDepartment Manager
FunctionalDepartment Manager
project
coordination
Staff in black blocks refer to those involved in project activitiesStaff
Staff
Staff
Staff
Staff
Staff
Staff
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Improve the quality of professional command
Greater flexibility in the use of staff.
Professionals from the same sector can share knowledge and
experience.
Advantages of functional type
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Focus on the functions of the department; place the department
interests higher than project objectives.
Functional department has its own day-to-day work. The interests of
project and the customers are often not given priority.
Project manager only plays a coordinating role and does not have
enough power to control the progress of the project.
Disadvantages of functional type
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President
Project Manager
Staff
Project Manager
Staff
Project Manager
Staff
Project
coordination
Staff
Staff in black blocks refer to those involved inproject activities)
Staff
Staff
Staff
Staff
Staff
Project type organization
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Project manager takes full charge of the project, who enjoys themaximum autonomy and can make full use of all the resources.
Project team members can clearly understand and focus on the project
objectives. Team spirit can be fully tapped.
The concentration of power speeds up decision-making process. The
team can make faster response to customer demand or high-levelintention.
Simple structure, easy to operate, more effective in progress, cost and
quality control.
Advantages of project type
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Since each project would bring together a large number of professionals, it is
not suitable for small businesses.
As the project focuses are different in various stages, team members dont
have equal work loads in different stages, which may on the one hand affect
staff's enthusiasm and on the other hand result in a waste of talents.
This structure is not conducive to the external communication. Equipment and
personnel can not be shared between different projects and it is difficult to
share knowledge and experiences.
Members of the project dont have sense of continuity and security.
Example: Organizing committee of Olympic Games
Disadvantages of project type
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Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
President
Functional Dep.
Manager
Functional Dep.Manager
Functional Dep.Manager
Project
coordinati
on
Staff in black blocks refer to thoseinvolved in project activities
Weak matrix
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Balanced matrix
President
Functional Dep.manager
Project
manager
Staff
Functional Dep.manager
Staff
Staff
Functional Dep.manager
Staff
Staff
Staff
Staff
Staff
Projectcoordination
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Strong Matrix
President
Functional Dep.
manager
Staff
Functional Dep.
manager
Staff
Staff
General Project
manager
Project
manager
Project
manager
Project
manager
Project
coordinati
on
staff
staff in black blocks refer to thoseinvolved in project activities
Staff
Staff
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Project Manager is responsible for the administrative functions and
department manager is responsible for the technical aspects of the
project, which can develop their own strengths.
Minimize duplication of resources and reduce redundant staff.
Project members can go back to function departments after the
completion of the project. They do not have to worry about dismission.
Advantages of matrix type
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Each project member has two leaders. Responsibilities are unclear.
If several projects share resources, it would lead to strife between the
project managers.
Disadvantages of matr ix type
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Influence of different organization struc ture to Project
organization form
Project features
Functionaltype
matrix type
Project typeWeak matrix Balanced
matrixStrongmatrix
Authority of project manager low or no limited Low to medium Medium tohigh
Very high, evenfull authority
Participation of full-time staffin project implementation andorganization
Almost zero 025% 1560% 5095% 85100%
Role of project manager Part time Part time Full time Full time Full time
Titles commonly used forproject manager
Projectcoordinator
Projectresponsibleperson
Projectcoordinator
Projectresponsibleperson
Project manager
Project director
Projectmanager
Planningmanager
Project manager
Planningmanager
Project Administrativepersonnel
Part time Part time Part time Full time Full time
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