Organizations are having to adapt to stay profitable in this tough market; they must be results-oriented while improving their operations and working conditions. Show
Organizations must adapt to a suitable structure to achieve their business goals, whether functional, projectized, matrix, or other types of structure. I have discussed the matrix and functional structures in separate blog posts. Now we will discuss projectized organizations. Please note that project and projectized are different terms. Projectized is a classification for an organization that deals with projects; many experts call projectized organizations, project-oriented, or project-based organizations. Projectized Organizational StructureIn projectized organizations, all activities are managed through the projects. Here, organizations encourage employees to share their lessons learned. At the same time, they allow others to learn and benefit from a shared corporate knowledge base. Project managers are in charge, and they have complete authority over resources. All team members report to them. Projectized organizations have no functional manager; if they do, their role will be minimal. Moreover, they won’t have any authority. The projectized structure is the opposite of the functional structure. In projectized organizations, resources are utilized for the project work. These organizations are only interested in external project work. Usually, they have a few small, functional departments that support activities. Examples include admin, accounting, human resources, etc. A projectized organization has to be dynamic for its survival. They always have to compete with other organizations to win bids. They will lose the contract if their quote is high or technically inferior. The project manager has all the authority. This does not mean they have the absolute power to do anything they desire. For example, let us say that your project is a part of a portfolio. Some idle equipment is needed for another project under the same portfolio. In this case, the portfolio manager will assign this equipment to the other project. You may or may not agree with this decision, but you have to follow the order. Project managers have enough authority they need to complete the project, and they can accept the responsibility and its outcome. Characteristics of a Projectized Organizational StructureThe following are a few characteristics of a projectized organizational structure:
Advantages of a Projectized Organizational StructureThese are a few advantages of a projectized organizational structure:
Disadvantages of a Projectized Organizational StructureThese are a few disadvantages of a projectized organizational structure:
Examples of Projectized Organizational StructureI often receive emails asking for examples of a projectized organizational structure. It is impossible to get a well-known example. Even if an organization only deals with projects, they need supporting departments to handle routine tasks like admin, finance, human resources, etc. Initially, when the organization is small, it is easier to be a projectized organization, a freelancer taking on a project or hiring temporary staff to complete a task. However, as organizations grow and become bigger, they need to adapt and take on characteristics of a strong matrix organization. SummaryProjectized organizations are dynamic, and they adapt quickly. In this organizational structure, project managers have a central role. They control everything. The PMO, portfolio manager, or program manager provides support to the project manager. However, project managers are responsible for the project and its outcome. Are you working in a projectized organization? Please share your experiences in the comments section. What are the 4 types of project organizational structures?According to PMI, there are four basic types of organization: Functional, Matrix, Projectized, and Composite.
Which organizational structure is best for project management?Matrix organizational structures are often used in project management because they speak to both the product of the project and the function of the management producing it.
In which of the following organizational structures the project manager works full time for the project?In a functional organization, project managers have more authority than they do in a matrix organization. More people work full time on projects in a functional organization than a matrix organization.
What is project based organizational structure?What's it: A project-based organizational structure is an organizational structure in which a company organizes its organization around specialized teams working on specific projects. In a simple model, the company takes staff from each department, appoints them, and assigns them to the project team.
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