Three types of organization structure

Functional Organization

An organizational structure where people are grouped by specialization/function, and the Project Manager has limited authority.

Advantages of Functional Organization

Includes unity of command, skill sharing among workers, consistent reporting to Functional Manager, and resource sharing among projects.

Disadvantages of Functional Organization

Includes slow communications, technical difficulties in interdisciplinary input, and lengthy decision-making processes.

Projectized Organization

A structure where employees are grouped by project activities, and the project manager has significant power over the team.

Advantages of Projectized Organization

Includes reduced departmental barriers, fast communication response times, and co-location of team members.

Disadvantages of Projectized Organization

Includes costs of part-time project assignments, differing teamwork methods, and potential neglect in sharing lessons learned.

Matrix Organization

An organization where Project Managers share responsibility with Functional Managers for project accountability.

Advantages of Matrix Organization

Includes resource sharing, reduced duplication, departmental cooperation, high-quality decision-making, and flexibility.

Disadvantages of Matrix Organization

Includes having multiple bosses, increased conflict sources, more meetings, and challenges in control.