Types of Project

Organization
 Functional Type Organization
• Functional groups consist of people with
similar expertise or skill.
• Each functional group focuses on
performing its own activities.
• In projects, the PM does not have
complete authority over the team.
• The PM must coordinate with other
functional managers
• May work for internal company projects.
 Project-Type Organization
• Each project is like a mini-company.
• The PM has complete authority over
resources.
• Because resources are not shared, may
be less efficient due to duplicate or idle
resources.
• Reduced opportunity to share knowledge.
• Requires detailed and accurate planning
and control.
 Mix-Type Organization
• A hybrid of functional and project orgs.
• Project manager responsible for project
results.
• Functional manager responsible for
providing the required resources.
• Shared resources leads to improved
resource utilization.
• Reporting structure is critical.
• Allows for fast response.
 Functional Structure
Advantages Disadvantages
• No duplication of • Lack of customer focus
activities • Functional activities
• Max: flexibility in the • No one fully
use of staff. Functional excellence responsible
• Individuals can utilized • Slow response time
in different projects. • Lack of coordinated
• Technological efforts (departments)
continuity • Weak motivation
• Normal path of
advancement
 Project Structure
Advantages
• Control over resources
• Responsiveness to
customers
• Short communication
line
• Permanent cadre of
experts (successive projects)
• Committed project team
• Simple and flexible
structure
Disadvantages
• Cost inefficiency
• Low level of knowledge
transfer among projects
• Technical K&S hired
when available, not
when needed
• Inconsistency in policies,
procedures to carry out
• Team members
attachment (proj: limited life)
• projectitis
 Mix Structure
Advantages Disadvantages
• Efficient utilization of • Dual reporting
resources relationships
• Functional expertise • Need for balance of
available to all projects power
• Increased learning,
communication, and
knowledge transfer
• Customer focus