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Types of Organizations from a Project Management Perspective
By Moises Ortiz

All projects are about teamwork and the way your team works depends on the type of organization your company is. Project managers will have different roles and responsibilities depending on the type of organization they’re in. There are three types of organizations:

Functional Organizations

Teams belong to a particular department and that department’s manager is completely in charge of everything. Project managers cannot make decisions without the functional manager’s authorization. Project managers become project coordinators and get to make some of the minor decisions on the project. If no decisions at all can be taken by the project manager they become project expeditors that limit their activities to just keep track of the project status.

Projectized Organizations

Teams are organized around projects and when the project is done the team members move to another project. In this kind of organization the Project Manager has all the authority to make decisions about scope, budget and schedule. The project manager is responsible for the success or failure of the project. Consulting companies are usually organized like this.

Matrix Organizations

This is a combination of the previous types of organizations. Project managers share authority with the functional managers. Team members report to a project manager as well as to a functional manager.

Since project managers don’t have much authority in a functional organization, it’s hard to have as much impact in a functional organization as you would in a matrixed or projectized organization.

Moises Ortiz is a project manager with strong experience in the IT field. He’s been working for many multinational corporations leading IT projects and helping them align their IT strategy to the overall business goals.

He holds a Bachelor’s degree in Electronic Systems Engineering from Instituto Tecnológico y de Estudios Superiores de Monterrey and can be contacted at his personal web page at www.moisesortiz.com.

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