How Organizational Structures Affect Projects And Project Management

It is true that organizational structures can have a big impact on project management. Think about your own experience. Is it very challenging to get traction on your project? Are there many layers of authority that you have to navigate to get approval for basic tasks? Is your budget cut because of competition for limited funds? Does your project lose support from routine operations? 

However, understanding your work environment better will help you improve organizational problems and smooth the path to successful project management at In this article, we are going to find out how each different organizational form influences project management.

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Functional Organizational Structure:

These companies are held into the functional division based on primary functions such as human resources, engineering, IT, finance, planning, and policy. Every different functional division operates groups of workers independently and isolated in division reports to functional managers. Functional managers generally allocate and monitor work and perform tasks such as performance evaluation and set payment levels. In this model, the project manager has very limited authority. 

Matrix Organizational Structure:

In the control of the organization, the matrix is shared. Project managers share responsibility for the project with a number of individual functional administrators. In this type of structure, there is a balance between operation and project that is ongoing, so it is a general structure for organizations that have this double role. 

Projected Organizational Structure:

In projected organizations, project managers have full power over the project. This includes the authority to set preferences, apply resources, and direct the work teamwork. All team members report directly to the project manager and everyone is assigned to a project. After completing the project, resources will be set back to another project.