Types of Organization Structure

Here’s the obvious thing about organization structure – every organization has one! So no matter the size, the industry, the OPM, each and every single one of the organization that you can think of has a certain structure. From project management perspective, we basically deal with 3 type of structures,

1. Functional Organization – This is where the teams work in separate silos. Each ‘silo’ rolls up to a Functional Manager (FM). The Project Manager in such an organization has no authority and works as an expeditor to get things done on time

2. Matrix Organization – Matrix organizations are very popular especially because most of the organizations fall into this category. This is where every project resource will have two bosses! Matrix organizations are further divided into three subcategories,

a. Weak Matrix – This is where the FM has more power than the PM. With some limited say in decision making, PM is a step ahead of being just an expeditor and is often termed ‘coordinator’ in such setting

b. Balanced Matrix – The concept of two bosses get into full effect here. The PM and FM share the same degree of power and resources report to both of them

c. Strong Matrix – In this scenario, the PM has much more power than the FM. Project resources still report to both PM and FM but the project delivery takes utmost importance

3. Projectized Organization – This is a setting where teams are organized around projects. After the completion of the project, the resources have ‘no home’ and can be released not just from the project but from the organization itself. Obviously, PM has the most power in such a setting

From PMP exam perspective, consider yourself as a PM in a balanced matrix structure unless stated otherwise in the question.

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