Running head: PROJECT MANAGEMENT ORGANIZATIONAL STRUCTURES
Project Management Organizational Structures MGT/437
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Project Management Organizational Structures
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Project Management Organizational Structures The way in which project groups of an organization are constructed is known as the organization structure. The organizational structure of a company affects every aspect of the business; communication, decision making, and delegation. Having a general understanding of each organizational structure will equip the company with the knowledge to make an informed decision of which structure is best for their company. Management must ensure effective communication and coordination within the organization. There are three primary project management organizational structures: functional, matrix, and pure project. These three project management organizational structures will be compared and contrasted herein. Functional Within the functional project management organizational structure, “the project is assigned to the functional unit that has the most interest in ensuring its success or can be most helpful in implementing it” (Meredith & Mantel, 2006, p.187). This organizational structure has been considerably one of the oldest methods used. Under this organizational structure projects are usually assigned into two different ways consisting of assigning a project to a functional manager who coordinates with others to contribute or assigning the project to different departments who each complete their portion of the work and report to the department managers. Consequently, “Organizational behavior is important because the functional employees at the interface position find themselves reporting to more than one boss—a line manager and one project manager for each project they are assigned to” (Kerzner, 2006, p. 10).
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Project Management Organizational Structures
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