3 Types Of Project Management Structures Every Company Should Consider

An organizational structure is a basic and most crucial component in the making of an organization. Without it, an organization is considered absurd, unprofessional, and ludicrous. The structure of an organization guides its people to follow a certain path which leads to the strategic goals. Also, an organizational structure defines how the decision-making process takes place, flow communication between members, and who holds the authority. It is like a visual representation and road map which guides the organization towards mission and vision. The span of control, degree of centralization, and chain of command are all conveyed through the structure of an organization. But not every structure is well suited to a particular organization. The type of business or service you deliver determines the structure that fits appropriately within your organizational culture. Likewise, the strategy you opt to execute a project defines a project management structure. Here teams are made and authority is distributed accordingly. Based on nature of project here are 3 major types of project management structure that you must consider before starting a project

Projectized organization:

In this particular type of structure, all the activities of the organization are managed through projects. The project manager holds the central authority and employees are responsible to report back to him. They are more inclined towards external projects with less functional departments. They are adaptive and teams are disbanded with resources released, once the project is completed.

Functional organization structure:

Such organizational structures mainly focus on the company's operations and stick with a functional structure. Here authority lies in the hand of the functional manager and employees are responsible to report him the details. Functional structures divide organizations into the department and employees are classified based on their level of expertise. This structure is best suited to industries involved in business dealings.

Matrix Organization Structure:

These structures are a combination of both functional and projectized structures and tell about the product of the project and the function of the management. Here lie dual reporting relationships i.e. a project manager and a functional manager. Matrix structures exist in large multi-project organizations. They are further divided into strong, weak, and balanced matrix structure. In the former, the project manager holds the authority while in a weak structure all the powers rest in the hands of the functional manager. However, in a balanced structure, both project and functional manager shares the authority.