Organizing Group Teams

and Structures
What is organizational structure?

● An organizational structure defines how activities

such as task allocation, coordination, and
supervision are directed toward the achievement
of organizational aims.
Example 1: Elementary School Organizational Chart
What is Project Organization in Project Management?

The term project organization refers to the

style of coordination, communication, and
management the project team uses throughout a
project lifecycle.
Why Is Project Organization Important?

Project managers use project organization to align team

members before and during a project. The process minimizes
disruption to your workflow and conflict among team
members, as well as leads to maximum productivity among
team members involved in a project.
Types of Project Organizational Structures

There are three types of organizational structures in project

management: functional, matrix, and projectized.

Each project structure framework is determined by the

authority, roles, and responsibilities of the team members within
the existing organizational structure.
1. Functional Project Organizational Structure
A functional project organizational structure organizes its
hierarchy around traditionally functioning departments. A functional
manager heads each department and reports to an executive.
These functional managers — not other staff — coordinate the
project, and they select team members from each department to
support the project, in addition to their functional responsibilities.
Pros in Functional
● Optimal Resources: Resources are not in competition with
other areas, which leaves little need for competition or
negotiation.
● Familiarity: Team members are already familiar with each
other and share similar skills and functions.
● Operational Efficiency: Has the potential to achieve greatest
operational efficiency due to the role and communication clarity.
Cons in Functional
● Missing the Right People: Projects may need
additional specialists if they do not have all the right
people within the area.
● Competing Priorities of Team: Team members may
feel challenged to balance competing priorities of
program responsibilities and project responsibilities.
● Siloed: This structure often creates organizational silos,
which can make strategic alignment challenging.
Management Priorities for a Project Manager (Functional)

● PM Authority: Low
● Communication Facilitation: Break down silos across
departments.
● Coordination: Engage cross-functional teams.
● Teamwork Emphasis: Engage teams outside of their
department.
● Continuous Goal Clarity: Keep project goals at the forefront in
competition with departmental goals distracting the project.
2. Projectized Organizational Structure

A projectized or project-based organizational structure creates

a dedicated project division within an organization. The project
coordination operates vertically under this division. Project
managers maintain sole authority for the project and are assigned
dedicated staff who work toward project goals.
Pros in Projectized

● Authority: The project manager owns all project decision making.

● Clarity: Project alignment, lines, goals, and strategy are clear across
the team.
Cons in Projectized
● Resource Duplication: Resources may not be optimized and can be
costly, due to the doubling of resources across multiple projects.

● Stunted Team Growth: Teams can be siloed, binding the team

members to one project at a time and limiting their growth.
Management Priorities for a Project Manager (Projectized)

● PM Authority: High
● Role Responsibility: Live up to the trust and leadership that
comes with full authority and ownership of the project.
● Maintain Team Morale: Build team trust and keep the team
moving to meet tight deadlines.
● Communication: Building strong communication networks
across projects is essential in reducing the duplication of
efforts.
3. Matrix Organizational Structure
A matrix organizational structure is set up on a grid to demonstrate
staff reporting patterns to more than one authority. It is a hybrid of
functional and projectized organizational structures, and project
managers share authority with other program managers in this
structure.

Three subtypes: weak, balanced, or strong.

3.1 Weak Structure

A weak structure is similar to the functional

organization structure, in which coordination occurs
horizontally among staff without a designated project
manager.
3.2 Balanced Structure
In a balanced matrix, the project manager also holds a
staff position and does not utilize the project manager role
to its full capacity.
The project manager primarily serves as the point of
contact and coordinator.
3.3 Strong Structure
A strong matrix is most similar to a projectized organizational
structure. In it, a dedicated project manager falls under a
functional project management department, has dedicated
cross-functional staff, and is supported by a manager of all the
project managers. This subtype offers the project manager the
most authority as they work across a matrixed environment.
Pros in Matrix
● People Optimization: Leverages each specialist’s skill set
across multiple projects.
● Flexibility: Employees can work across departmental units without
being bound to one.
● Project Control: Strong coordination among team members
eases communication and information boundaries.
Cons in Matrix
● Costs: Administrative costs are higher, due to the operational
complexity of the reporting relationships.
● Workload Miscommunication: There is a greater potential for
misunderstanding a team's workload, given that they report
both to a project manager and a department manager.
● Increased Conflict: Shared authority among managers
potentially creates confusion on roles.
Management Priorities for a Project Manager (Matrix)
● PM Authority: Medium
● Influencing and Negotiation Skills: Navigate limited authority with other
program managers and interactions with the project team members.
● Servant Leadership: Focus on building deep collaboration and
communication with the team, and continuously monitor the division of labor.
● Open Communication Lines: These boundaries are essential to spot and
resolve conflicts before bigger issues come up.
● Team Recognition: Acknowledge the team comes from multiple parts of
the organization. Take time for team building and engagement
opportunities.
What is the best organizational structure?
Features of an Organization Structure

The features of an organizational structure define the

roles and relationships among members of the project, as
well as between projects. These relationships are determined
by authority, communication lines, coordination, supervision,
and responsibilities.
Features of an Organization Structure
● Hierarchy
● Division of Labor
● Span of Control
● Position Type (Line vs. Staff)
● Centralization
How to Make a Project Organizational Chart

To make a project organizational chart, first assess the goals

of the project, identify the core team, and assign them
appropriate roles to the project. Develop the organizational chart
by mapping out the roles and responsibilities of each team
member.
How to Make a Project Organizational Chart
Step 1: Align the Project with Organizational Strategy
Step 2: Analyze Projects on an Organizational Level
Step 3: Determine Roles and Responsibilities

Step 4: Structure the Chart

Step 5: Finalize the Organizational Chart
Step 6: Communicate
Examples of Project Management Organizational Structure
Example of Functional Organizational Structure for
Manufacturing
A team using a functional organizational structure in manufacturing shows
the straightforward reporting structure of each department to the executive.
The functional managers (the manufacturing manager, marketing manager,
engineering manager, etc.) are responsible for coordinating all parts of the
project, as indicated by the green highlight in the next image. Note the true
horizontal coordination of the project. This example also shows that existing
departments in the organizational structure (finance, HR, etc.) may not
typically be involved in projects.
Manufacturing Project Organization Structure
Example of Projectized Project Organizational Structure
for Construction

Construction teams most commonly use projectized organizational

structures. Dedicated project managers coordinate all aspects of the
project, and multiple project managers report to the company
executive. Other supporting departments may also exist to run the
business operations of the company.
Construction Project Organization Structure
Example of Matrix Project Organizational Structure for Software
Development

Software development project management structures can vary

widely, but they most often optimize for cross-functional teams. The
matrix structure shown below is a visualization of such cross-
functional reporting, wherein each technical specialist reports to
both a head of their discipline and the product owner (in lieu of a
project manager).
Software Project Organization Structure (Matrix)
Example of School Organizational Chart
Example 1: Elementary School Organizational Chart
Reference:
https://www.smartsheet.com/content/project-management-
organization

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