Organization Structure & Its Impact On Project Management
Organization Structure & Its Impact On Project Management
Management Execution
The summary table just below represents a cross reference between an organization structure
and different characteristics in a project.
Figure 2-1 shows a classic functional organization where each employee has one clear superior.
Groupings occur from at top level down to the bottom level (e.g. accounting, engineering,
marketing). Project work of each group is typically performed independently of other groups.
Figures 2-2 through 2-4, reflect a blend of functional and projectized matrix organizations that
are classified as weak, balanced, or strong depending on levels of power and influence that
functional and project managers have.
• Example 2: Also, an organization may manage most of its projects in a strong matrix, but
allow small projects to be managed by functional departments.
Because many organizational structures include strategic, middle management and operational
levels, the project manager may interact with all three levels depending on factors such as:
Execution of projects falls into one of the above organization structures. Because managing the
day-to-day activities of the team is necessary for project success but not sufficient as a whole, I
provided the needed context to help with a broader understanding. Doug Sundheim's HBR
article, Closing the Chasm Between Strategy and Execution, provides an even greater context of
how project execution fits into overall strategy of an organization.