What is a Projectized Organization Structure?

The projectized organization structure is just opposite to the functional organization structure. In projectized organization, the project manager has all the power and authority and everybody directly report to the project manager. Here, either no functional manager exists, or if he exists, he will have a very limited role.

In the previous blog post, I discussed the functional organization structure. And in this blog post, I’m going to talk about another type of organization structure: the projectized organization structure. This topic is also one of the very important topics for the PMP Certification Exam. Be prepared to see at least one or two question in your test from this topic.

Okay, let’s get started…

In projectized organizations, most of the organization’s resources are utilized in the project work. These types of organizations are only interested in the project work which is undertaken for external clients.

Here, the project manager has full time project team members working under him. Usually, all personnel working for a particular project are grouped together and are often co-located for the duration of the project.

As I said earlier, in the projectized organization structure, the project manager has all power and authority. This does not mean that the project manager has an absolute authority to do everything he wishes.

For example, let’s say that a project is performed under a program management or a portfolio management. And in another project under the same program or the portfolio, some equipment are needed which are lying idle in your project. In this case, the program manager or the portfolio manager simply allocates the equipment to the project which requires it. A project manager may or may not agree with it, but he has to comply with it.

Organizations give project managers as much authority and power he needed to complete the project, and accept the responsibility for the outcome of it.

Characteristics of the Projectized Organization Structure: Following are the few characteristics of the projectized organization structure:

• The project manager has all authority and power in this type of organizational structure.
• Project team member report to the project manager.
• The project manager controls the budget, resource, and work assignment.
• When the project ends, project team is disbanded and team members and other resources are released.

Advantages of the Projectized Organization Structure: A few advantages of the projectized organization structure are as follows:

• Clear line of authority.
• Strong communication with single reporting system.
• Flexibility in trade-offs and decision making.
• Fast decision making.
• Usually responses to stakeholders’ concern are very fast.

Disadvantages of the Projectized Organization Structure: A few disadvantages of the projectized organization structure are as follows:

• Authority and power can make project manager arrogant.
• The work environment can be stressful because there is always a deadline (milestones).
• Resources may be duplicated.
• Team members have sense of insecurity because once the project finishes, they may lose their jobs.
• If the project get elongated, cost of employee and equipment can go higher.
• If the organization has multiple projects, then there is very poor communication and co-operation among the different project teams.

This was all about the projectized organization structure. If you want to add any more characteristics, advantages, or disadvantages, you are welcome to leave your suggestions in the comments section.

In next blog post, I’m going to discuss the matrix organization structure. Stay tuned….

image credit =>FreeDigitalPhotos.net

Related Posts

1. What is a Functional Organization Structure?
2. Power of the Project Manager
3. Enterprise Environmental Factors & Organizational Process Assets