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PROJECT MANAGEMENT ORGANIZATIONAL STRUCTURES
Project management organizational structure is very important to the success of any project
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Types of a company's organizational structure will affect how resources are allocated to
the project and that will be a factor in how much influence the project manager will have
within the organization
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Functional organizational structure
2
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Matrix organizational structure
Functional organizational structure
In this type of structure, authority-driven decisions like budgeting, scheduling, and
purchasing equipment rest on the shoulders of the functional manager who possesses a
significant level of expertise in the same field
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In a functional organizational structure, employees appear to be more skilled in their
respective departments leading to greater work efficiency
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Examples
of functions within a company are advertising, engineering, human resources, manufacturing
etc
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In this structure, a project manager has authority over the decision of the
project's budget, schedule, and the project team
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What´s great about this kind of structure is that there is a clear, established line of authority,
which results in faster decision making and approval
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There are three
types of matrix
organizational structure:
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Weak matrix

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Strong matrix

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Balanced matrix

If the organization is running a weak matrix structure, then the project authority would fall
into the hands of a functional manager as it is in a functional organization
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The strong matrix organizational structure has some similarities with that of a projectized
organizational structure in the sense that the project manager handles a project
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In a balanced matrix organization, both the project manager and the functional manager
shares equal authority for the project
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